In the Long Run, a Firm Will Choose a Plant

question 211

Multiple Choice

In the long run, a firm will choose a plant size that has the

• A)minimum of average fixed costs.
• B)capacity to produce the largest quantity of the product.
• C)minimum average total cost of producing the target level of output.
• D)maximum level of resource use per unit of the total product of output.

---

Definitions:

Product Utility

Refers to the value or satisfaction a consumer derives from the use of a product or service, encompassing aspects like form, time, place, and possession utility.

Marketspace

The digital counterpart to a physical marketplace, where transactions are facilitated online through the internet.

Customization

The process of tailoring a product or service to meet the specific needs or preferences of an individual customer or market segment.

Collaborative Relationship

A collaborative relationship involves working together cooperatively, sharing resources, ideas, and efforts to achieve a common goal.