Exhibit 7.5Costper unitq0qRefer to Exhibit 7.5, which shows four short-run average cost curves for different possible plant sizes. If the firm represented in the figure below wants toproduce output level q, then, in the long run, it should build a plant size with an average total cost curve of_O a. 1.O b. 2.Oc. 3.O d. 4.Oe. either 1 or 3.4

Average total cost refers to total cost per unit of Output. It is a U shaped curve. It initially…

Exhibit 7.5 Cost per unit q Refer to Exhibit 7.5, which shows four short-run average cost curves for different possible plant sizes. If the firm represented in the figure produce output level q, then, in the long run, it should build a plant size with an average total cost curve of_ O a. 1. O b. 2. O c. 3. O d. 4. e. either 1 or 3. 3 ان D

Exhibit 7.5 Cost per unit q Refer to Exhibit 7.5, which shows four short-run average cost curves for different possible plant sizes. If the firm represented in the figure produce output level q, then, in the long run, it should build a plant size with an average total cost curve of_ O a. 1. O b. 2. O c. 3. O d. 4. e. either 1 or 3. 3 ان D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

Exhibit 7.5
Cost
per unit
q
0
q
Refer to Exhibit 7.5, which shows four short-run average cost curves for different 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 an average total cost curve of_
O a. 1.
O b. 2.
O
c. 3.
O d. 4.
Oe. either 1 or 3.
4

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