Narrbegin Exhibit 6.10 Long-run average cost Narrend
-In Exhibit 6.10, short-run average total cost, short-run marginal cost and long-run average cost are all equal at which level of output per week?

Question

Narrbegin Exhibit 6.10 Long-run average cost  Narrend
-In Exhibit 6.10, short-run average total cost, short-run marginal cost and long-run average cost are all equal at which level of output per week?

Quizplus · Accepted Answer

At the intersection of the short-run average total cost, short-run marginal cost, and long-run average cost curves, the firm is operating at its minimum efficient scale. In this case, it occurs at an output of 1000 units per week. Thus, the best choice is option B.

Narrbegin Exhibit 6.10 Long-Run Average Cost Narrend