-If you wanted to produce an output of 7,000,in the long run you would choose a plant whose size was represented by

Question

Quizplus · Accepted Answer

To produce an output of 7,000 in the long run, you would choose the plant size that offers the lowest average total cost (ATC) at that level of output. Without specific ATC curves to view, the correct answer is based on the assumption that ATC3 represents the plant size with the lowest ATC at an output level of 7,000. In general, the optimal plant size is the one where the ATC is minimized for the desired level of output.

-If You Wanted to Produce an Output of 7,000,in the Long