-Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC₁) , Plant 2 (ATC₂) , Plant 3 (ATC₃) , and Plant 4 (ATC₄) . Dustin's Plant 2 will be economically efficient if the firm produces

Question

-Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC<sub>1</sub>) , Plant 2 (ATC<sub>2</sub>) , Plant 3 (ATC<sub>3</sub>) , and Plant 4 (ATC<sub>4</sub>) . Dustin's Plant 2 will be economically efficient if the firm produces A) 2,000 copies per day. B) 4,800 copies per day. C) 5,300 copies per day. D) 6,000 copies per day.

Quizplus · Accepted Answer

Plant 2 is economically efficient when it operates at the lowest point on its average total cost curve, which occurs at 4,800 copies per day.

-Dustin's Copy Shop Can Use Four Alternative Plants