A Single-Plant Firm Trying to Select the Rate of Output

question 53

Multiple Choice

A single-plant firm trying to select the rate of output consistent with an overall plant size that yields the minimum efficient scale will choose a rate of output for which

• A) the short-run marginal cost curve crosses the short-run average total cost curve at that rate of output.
• B) the long-run marginal cost curve crosses the long-run average fixed cost curve at that rate of output.
• C) long-run average total cost is lowest at that rate of output.
• D) total fixed costs are minimized at that rate of output.