The Following Are Cost Data for Four Different Size Plants

question 53

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 $80,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.

---

Definitions:

Students

Individuals who are enrolled in an educational institution for the purpose of learning and acquiring knowledge.

Pain Killers

Medications or substances used to reduce or relieve pain.

Inhalants

Substances that are sniffed or inhaled to achieve a quick high, often household or industrial chemicals.

Admitted

The act of conceding or acknowledging something, often used in the context of accepting individuals into medical or rehabilitative facilities.