Figure 11.5
-Refer to Figure 11.5.What is the efficient output level?

Question

Figure 11.5 
-Refer to Figure 11.5.What is the efficient output level?

Quizplus · Accepted Answer

The efficient output level is the point where the marginal cost (MC) curve intersects the average total cost (ATC) curve at its lowest point. In the given figure, this point is where the MC curve intersects the ATC curve at Q_n, which corresponds to a quantity of output of Q1 and a price of P1. Therefore, choice B is the best choice as it correctly identifies the efficient output level. The other choices include additional information that is not relevant to the question, or they incorrectly identify the efficient output level.

Figure 11.5 -Refer to Figure 11.5.What Is the Efficient Output Level