-The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 80 units per day?
A) plant A
B) plant B
C) plant C
D) plant D

Question

-The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 80 units per day?
A) plant A 
B) plant B 
C) plant C 
D) plant D

Quizplus · Accepted Answer

The best plant to use for producing 80 units per day is the one with the lowest average total cost at that level of output. Plant C has the lowest average total cost at 80 units, making it the most cost-effective choice.

-The Average Total Cost Curves for Plants A, B, C