A single-plant firm trying to select the rate of output consistent with an overall plant size that yields the minimum efficient scale will choose a rate of output for which
A) the short-run marginal cost curve crosses the short-run average total cost curve at that rate of output.
B) the long-run marginal cost curve crosses the long-run average fixed cost curve at that rate of output.
C) long-run average total cost is lowest at that rate of output.
D) total fixed cots are minimized at that rate of output.
Answer: C
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When a(n) ________ in investment increases consumption and real GDP, part of the increase in expenditure is on ________, not ________ goods and services
A) increase; exports; U.S.-produced B) decrease; exports ; U.S.-produced C) increase; imports; U.S.-produced D) increase; imports; foreign-produced E) decrease; imports; U.S.-produced
If prices increased, we need to adjust nominal GDP values to give us a measure of GDP for various years in constant-dollar terms. We refer to that adjustment as:
A. Inflating GDP B. Deflating GDP C. Compounding GDP D. Indexing GDP