Use the figure below to answer the following questions.

Figure 11.4.2
-Refer to Figure 11.4.2, which illustrates the short-run average total cost curves for four different plant sizes. Which plant has the lowest average total cost for an output rate of 5 sweaters a day?
A)Plant A
B)Plant B
C)Plant C
D)Plant D
E)none of the above

Question

Use the figure below to answer the following questions.
  
Figure 11.4.2
-Refer to Figure 11.4.2, which illustrates the short-run average total cost curves for four different plant sizes. Which plant has the lowest average total cost for an output rate of 5 sweaters a day?
A)Plant A 
B)Plant B 
C)Plant C 
D)Plant D 
E)none of the above

Quizplus · Accepted Answer

Plant A has the lowest average total cost for an output rate of 5 sweaters a day. This can be seen from the intersection of the ATC curve for Plant A and the 5 sweaters/day output rate line.

Use the Figure Below to Answer the Following Questions