Figure 72 Shows Four Short-Run Average Cost Curves for Many Possible

question 113

Multiple Choice

Figure 7.2 shows four short-run average cost curves for many possible plant sizes. If the firm represented in the figure below wants to produce output level q, then, in the long run, it should build a plant size with average total cost curve of _____. ​
Figure 7.2
​

• A)1
• B)2​
• C)3​
• D)4
• E)either 1 or 3

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Definitions:

Splanchnic Nerve

Nerves that innervate the viscera, transmitting information to and from the visceral organs to the central nervous system.

Sympathetic Chain

A part of the autonomic nervous system consisting of a series of ganglia that run alongside the spinal column and influence internal organs by releasing neurotransmitters.

Collateral Ganglia

Sympathetic ganglia at the origin of large abdominal arteries; include the celiac, superior, and inferior mesenteric arteries; also called prevertebral ganglia.

Preganglionic Fibers

Nerve fibers that run from the central nervous system to a ganglion in the autonomic nervous system.