The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars.
TABLE 7-6
-Refer to Table 7-6.Suppose there are no fixed costs.The firm reaches it's capacity level of output when its output is equal to ________ units.
A)50
B)110
C)150
D)190
E)210

Question

The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars.
  TABLE 7-6
-Refer to Table 7-6.Suppose there are no fixed costs.The firm reaches it's capacity level of output when its output is equal to ________ units.
A)50 
B)110 
C)150 
D)190 
E)210

Quizplus · Accepted Answer

The capacity level of output is typically where the firm produces at its most efficient scale, often at the minimum point of the average total cost curve. Without fixed costs, this is likely at a moderate level of output, such as 150 units.

The Table Below Shows Output,marginal Cost,and Average Variable Cost for the Production