Answer the question on the basis of the following demand and cost data for a specific firm. $ \quad$$ \quad$$ \quad$$ \quad$$\text { Demand Data }$ $ \quad$$ \quad$$ \quad$ $\text { Cost Data }$
$\begin{array}{|c|c|c|c|c|}
\hline(1) &(2)&(3)&&\text { Total } \
\text { Price }&\text { Price }&\text { Quanti }&\text { Outpu }&\text { Cost } \
&&\text { ty }& \text { t }\
\hline 11.0 & \$ 10.0 & 6 & 6 & \$ 61 \
0 & 0 & & & \
\hline 9.99 & 8.85 & 7 & 7 & 62 \
\hline 9.00 & 8.00 & 8 & 8 & 64 \
\hline 8.00 & 7.00 & 9 & 9 & 67 \
\hline 7.10 & 6.10 & 10 & 10 & 72 \
\hline 6.00 & 5.00 & 11 & 11 & 79 \
\hline 5.15 & 4.15 & 12 & 12 & 86 \
\hline
\end{array}$ With the demand schedule shown by columns (2) and (3), in long-run equilibrium

Question

Answer the question on the basis of the following demand and cost data for a specific firm. $ \quad$$ \quad$$ \quad$$ \quad$$\text { Demand Data }$ $ \quad$$ \quad$$ \quad$ $\text { Cost Data }$
$\begin{array}{|c|c|c|c|c|}
\hline(1) &(2)&(3)&&\text { Total }  \
\text { Price }&\text { Price }&\text { Quanti }&\text { Outpu }&\text { Cost } \
&&\text { ty }& \text { t }\
\hline 11.0 & \$ 10.0 & 6 & 6 & \$ 61 \
0 & 0 & & & \
\hline 9.99 & 8.85 & 7 & 7 & 62 \
\hline 9.00 & 8.00 & 8 & 8 & 64 \
\hline 8.00 & 7.00 & 9 & 9 & 67 \
\hline 7.10 & 6.10 & 10 & 10 & 72 \
\hline 6.00 & 5.00 & 11 & 11 & 79 \
\hline 5.15 & 4.15 & 12 & 12 & 86 \
\hline
\end{array}$ With the demand schedule shown by columns (2) and (3), in long-run equilibrium

Quizplus · Accepted Answer

In long-run equilibrium, the firm will produce at the minimum point of its average total cost (ATC) curve. Looking at the cost data table, we see that the ATC is minimized when output is 8, at which point ATC equals $8.00. At this output level, the price is also $8.00, which satisfies the condition of price equaling average total cost. Therefore, the correct answer is A.

Answer the Question on the Basis of the Following Demand \quad

Answer the Question on the Basis of the Following Demand $\quad$