Exhibit 7-15 Long-Run Average Cost

question 41

Multiple Choice

Exhibit 7-15 Long-run average cost

If the firm represented in Exhibit 7-15 is operating with a plant whose size corresponds to short-run average total cost curve A, the level of output that would minimize its short-run average total cost is:

• A) 500 units per week.
• B) 1,000 units per week.
• C) 1,500 units per week.
• D) 2,000 units per week.

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Definitions:

Color-coding

A system for displaying information by using different colors to categorize, organize, or prioritize.

Filing System

An organized method for storing documents, files, and information so they can be easily retrieved, managed, and kept in order.

Indexing

The naming of a file.

Tapered Extension

A narrowing or reducing in thickness towards one end of an object or structure.