Exhibit 6-15 Long-run average cost

-If the firm represented in Exhibit 6-15 is operating with a plant whose size corresponds to short-run average total cost curve A,the level of output that would minimize its short-run average total cost is:

Question

Exhibit 6-15 Long-run average cost
 
-If the firm represented in Exhibit 6-15 is operating with a plant whose size corresponds to short-run average total cost curve A,the level of output that would minimize its short-run average total cost is:

Quizplus · Accepted Answer

The minimum point of the short-run average total cost curve is the point where the marginal cost curve intersects the average total cost curve. In Exhibit 6-15, this point occurs at an output level of 500 units per week.

Exhibit 6-15 Long-Run Average Cost