Figure 8-6

-At what output does the firm depicted in Figure 8-6 minimize its per-unit cost of production?

Name: Figure 8-6 -At what output does the firm depicted in Figure 8-6 minimize its per-unit cost of production?
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Figure 8-6
 
-At what output does the firm depicted in Figure 8-6 minimize its per-unit cost of production?

Quizplus · Accepted Answer

The output Q₂ is where the average total cost curve is at its minimum, which is the point of minimum per-unit cost of production. Therefore, the firm should produce at output Q₂ to minimize its per-unit cost of production.

Figure 8-6 -At What Output Does the Firm Depicted in Figure 8-6