At 1000 calculators per day, Texas Instrument's factory is running at full capacity. This means that the cost of each calculator is now at its ________ cost.
A) lowest
B) target cost
C) highest
D) total cost
E) average

Question

Quizplus · Accepted Answer

When a factory is running at full capacity, it is producing the maximum output possible, which leads to economies of scale and lower production costs per unit. Therefore, the cost of each calculator at full capacity is at its lowest cost.

At 1000 Calculators Per Day, Texas Instrument's Factory Is Running