Asked by Zachary Zamborelli on Apr 24, 2024
Verified
In the short run a firm's lowest cost level of output is the minimum point on its ________ cost curve.
A) average total
B) total variable
C) average fixed
D) marginal
Lowest Cost Level
The point at which a business can produce its goods or services at the minimum possible cost.
Average Total
The sum of all the costs of production (fixed and variable) divided by the total quantity produced; often referred to as average total cost.
- Comprehend the difference between short-run and long-run costs in production.
Verified Answer
JA
James Atkins7 days ago
Final Answer :
A
Explanation :
In the short run, a firm's lowest cost level of output is the minimum point on its average total cost curve. This point represents the most efficient scale of production where average total costs are minimized.
Learning Objectives
- Comprehend the difference between short-run and long-run costs in production.