Use the following data to answer the question.The letters A,B,and C designate three successively larger plant sizes. $\begin{array}{c}
\begin{array}{ccc}
\text { Output } & & \text { ATC-A } \
\hline
10 & & \$ 6 \
20 & & 5 \
30 & & 4 \
40 & & 5 \
50 & & 7 \
60 & & 10 \
70 & & 14 \
80 & & 19 \
90 & & 25 \
100 & & 32
\end{array}
\begin{array}{ccc}
\text { ATC-B } & & \text { ATC-C } \
\hline
\$ 13 & & \$ 44 \
9 & & 35 \
6 & & 27 \
4 & & 20 \
3 & & 14 \
4 & & 11 \
5 & & 8 \
7 & & 6 \
10 & & 5 \
16 & & 7
\end{array}
\end{array}$ Refer to the data.In the long run the firm should use plant size "C" for:

Question

Quizplus · Accepted Answer

Plant size "C" has the lowest average total cost (ATC) for all units of output greater than or equal to 80. At 80 units of output, ATC-C is $19, which is already lower than ATC-A ($32) and ATC-B ($16). As output increases, ATC-C continues to decrease, while ATC-A and ATC-B increase, making plant size "C" the optimal choice for all units of output greater than or equal to 80.

Use the Following Data to Answer the Question Refer to the Data