A Firm's Capacity Is Defined as the Level of Output

question 26

Multiple Choice

A firm's capacity is defined as the level of output where

• A) short- run average total cost is at its minimum.
• B) the upper limit on what can be produced is reached.
• C) average total cost is at its maximum.
• D) average fixed costs are at a minimum.
• E) marginal cost equals average variable cost.

---

Definitions:

Roles

The functions or parts played by individuals or elements in a particular situation or process.

Flip Chart

A pad of large paper sheets on a stand used for displaying information in an interactive meeting or presentation.

Project Scope

The boundaries and extent of a project, defining what is included and excluded from the work to be done.

New Information

Newly acquired data or knowledge that was not previously known.