Figure 7.2 shows four short-run average cost curves for many possible plant sizes. If the firm represented in the figure below wants to produce output level q, then, in the long run, it should build a plant size with average total cost curve of _____.
Figure 7.2

A)1
B)2
C)3
D)4
E)either 1 or 3

Question

Figure 7.2 shows four short-run average cost curves for many possible plant sizes. If the firm represented in the figure below wants to produce output level q, then, in the long run, it should build a plant size with average total cost curve of _____. ​
Figure 7.2
​

A)1 
B)2​ 
C)3​ 
D)4 
E)either 1 or 3

Quizplus · Accepted Answer

The Answer of Figure 7.2 shows four short-run average cost curves for many possible plant sizes. If the firm represented in the figure below wants to produce output level q, then, in the long run, it should build a plant size with average total cost curve of _____. ​
Figure 7.2
​

A)1 
B)2​ 
C)3​ 
D)4 
E)either 1 or 3

Figure 72 Shows Four Short-Run Average Cost Curves for Many Possible