This Figure Shows the Long-Run Average Total Cost Curve for a Firm

question 130

Multiple Choice

This figure shows the long-run average total cost curve for a firm that produces basketballs, along with four short-run average total cost curves. Each of the short-run average total cost curves corresponds to a different plant size. SRATC₁ corresponds to Plant size 1, SRATC₂ corresponds to Plant size 2, and so forth.
FIGURE 7-6

-Refer to Figure 7-6. Which plant size is optimal for the firm to produce qB units of output each week?

• A) Plant 2
• B) Plant 3
• C) Plant 4
• D) Plant 5

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Definitions:

Customer's Interests

Preferences, needs, or desires that customers seek to fulfill when purchasing goods or services.

Ethical Decisions

Choices made based on moral principles and values, often involving considerations of fairness, accountability, and integrity.

Job Enlargement

The grouping of a variety of tasks about the same skill level; horizontal enlargement.

Source Inspection

The practice of inspecting goods or materials at the supplier's site before they are shipped to the purchaser, to ensure they meet specified quality standards.