Use the following data to answer the question. The letters A, B, and C designate three successively larger plant sizes. In the long run, the firm should use plant size "C" for

Question

Use the following data to answer the question. The letters A, B, and C designate three successively larger plant sizes.  In the long run, the firm should use plant size "C" for

Quizplus · Accepted Answer

Plant size "C" has the lowest long-run average total cost of production for all levels of output greater than or equal to 80, making it the most cost-efficient option. For levels of output between 40 to 70, plant size "B" may be a more cost-efficient choice, but it is not one of the options presented. Similarly, for levels of output between 10 to 30, plant size "A" may be a more cost-efficient choice, but it is also not one of the options presented. Therefore, the best choice(s) is plant size "C" for all units of output greater than or equal to 80.

Use the Following Data to Answer the Question