This Figure Shows the Long-Run Average Total Cost Curve for a Firm

This figure shows the long-run average total cost curve for a firm that produces basketballs, along with four short-run average total cost curves. Each of the short-run average total cost curves corresponds to a different plant size. SRATC₁ corresponds to Plant size 1, SRATC₂ corresponds to Plant size 2, and so forth.
FIGURE 7-6

-Refer to Figure 7-6. Which plant size is optimal for the firm to produce qB units of output each week?

A) Plant 2
B) Plant 3
C) Plant 4
D) Plant 5

Correct Answer:

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