The Following Are Cost Data for Four Different Size Plants

question 110

Multiple Choice

The following are cost data for four different size plants available to a competitive producer:

-Refer to the above information to answer this question.If the market price of this product is $60,which is the best size of plant?

• A)The plant represented by AC1.
• B)The plant represented by AC2.
• C)The plant represented by AC3.
• D)The plant represented by AC4.
• E)It depends on whether it is the short run or the long run.

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Definitions:

Item Selection

The process of choosing questions or tasks for a test or questionnaire to ensure its validity and reliability.

Factor Analytic Technique

A statistical method used to describe variability among observed, correlated variables in terms of potentially lower number of unobserved variables, called factors.

Test Construction

The process of developing a test that accurately measures what it is intended to measure, with reliability and validity.

Factor Analytic Approach

A statistical method used in psychology to identify clusters of related items (factors) on tests or surveys, revealing underlying variables.