In the short run, a firm using variable labor and fixed capital inputs achieves the ________ level of output at the minimum point on its average total cost curve.
A) efficient
B) highest cost
C) least efficient
D) only possible

Question

Quizplus · Accepted Answer

In the short run, a firm achieves the efficient level of output at the minimum point on its average total cost curve because this point represents the most cost-effective combination of inputs (given the firm's fixed capital) for producing output.

In the Short Run, a Firm Using Variable Labor and Fixed