Production units have an optimal rate of output where:
A)total costs are minimum.
B)average unit costs are minimum.
C)marginal costs are minimum.
D)rate of output is maximum.
E)total revenue is maximum.

Question

Quizplus · Accepted Answer

The optimal rate of output for production units is where average unit costs are minimum. This point ensures that the cost of producing each additional unit is as low as possible, maximizing efficiency and profitability.

Production Units Have an Optimal Rate of Output Where