An industry is producing at the least-cost rate of production when

Question

Quizplus · Accepted Answer

The least-cost rate of production is achieved when price and the minimum average cost are equal. This is because producing at this level ensures that the firm is minimizing the cost of production while still earning enough revenue to cover these costs. If the firm were to produce more, the average cost would increase, and they would be producing at a higher cost than necessary. Similarly, if they were to produce less, they would not be earning enough revenue to cover their costs. Therefore, C is the correct choice.

An Industry Is Producing at the Least-Cost Rate of Production