Use the Following Data to Answer the Question Refer to the Data

question 142

Multiple Choice

Use the following data to answer the question.The letters A,B,and C designate three successively larger plant sizes. $\begin{array}{c}\begin{array}{ccc}\text { Output } & & \text { ATC-A } \\\hline10 & & \$ 6 \\20 & & 5 \\30 & & 4 \\40 & & 5 \\50 & & 7 \\60 & & 10 \\70 & & 14 \\80 & & 19 \\90 & & 25 \\100 & & 32\end{array}\begin{array}{ccc}\text { ATC-B } & & \text { ATC-C } \\\hline\$ 13 & & \$ 44 \\9 & & 35 \\6 & & 27 \\4 & & 20 \\3 & & 14 \\4 & & 11 \\5 & & 8 \\7 & & 6 \\10 & & 5 \\16 & & 7\end{array}\end{array}$ Refer to the data.In the long run the firm should use plant size "A" for:

• A) all possible levels of output.
• B) 10 to 30 units of output.
• C) 30 to 60 units of output.
• D) all outputs greater than or equal to 40.

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Definitions:

Insurance Expenses

The cost incurred by a business or individual for purchasing insurance policies to protect against risk.

Specific Legacy

A bequest in a will that leaves a particular piece of property or a specific asset to a designated beneficiary.

Probate Laws

The legal process through which a deceased person's estate is valued, beneficiaries are determined, and assets are distributed according to the deceased's will or state law.

Remaining Principal

The amount of the original loan or mortgage that has not yet been repaid.