Suppose that,in the long run,a dairy's variable costs are (where Q is the number of gallons of milk produced each day),its marginal cost is and there is an avoidable fixed cost of $50 per day.In the long run there is free entry into the market.What is the efficient scale of production?
A) 5 gallons per day
B) 100 gallons per day
C) 20 gallons per day
D) 50 gallons per day

Question

Suppose that,in the long run,a dairy's variable costs are  (where Q is the number of gallons of milk produced each day),its marginal cost is  and there is an avoidable fixed cost of $50 per day.In the long run there is free entry into the market.What is the efficient scale of production?
A) 5 gallons per day 
B) 100 gallons per day 
C) 20 gallons per day 
D) 50 gallons per day

Quizplus · Accepted Answer

The Answer of Suppose that,in the long run,a dairy's variable costs are  (where Q is the number of gallons of milk produced each day),its marginal cost is  and there is an avoidable fixed cost of $50 per day.In the long run there is free entry into the market.What is the efficient scale of production?
A) 5 gallons per day 
B) 100 gallons per day 
C) 20 gallons per day 
D) 50 gallons per day

Suppose That,in the Long Run,a Dairy's Variable Costs Are