-Dustin's Copy Shop Can Use Four Alternative Plants

question 47

Multiple Choice

-Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC₁) , Plant 2 (ATC₂) , Plant 3 (ATC₃) , and Plant 4 (ATC₄) .What is Dustin's long-run average cost if the output is 3,000 copies per day?

• A) 3.7 cents per copy
• B) 5.0 cents per copy
• C) 8.5 cents per copy
• D) More information is needed to determine the long-run average cost.

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Definitions:

Economic Efficiency

The condition in which it is impossible to generate a larger welfare from the existing resources. In other words, the situation in which every resource is optimally allocated to serve each individual in the best way while minimizing waste and inefficiency.

Environmental Regulation

Laws and rules that govern how individuals, companies, and governments interact with the natural environment to minimize harm and ensure sustainable development.

Property Rights

The legal rights to own, use, and dispose of assets, land, or property.

Economic Outcomes

The results or consequences of economic activities, which can affect wealth, resource distribution, and overall economic health.