1- Long Run Average Total Cost is defined as :

The sum of total costs totaled across all possible plant sizes and divided by total production.

The minimum possible average total cost for each possible input level.

The minimum possible average total cost for each output level.

2- For this question, there are multiple correct answers.

Added benefits of plant expansion can result from:

A. improved specialization in labor and management.

B. a co-ordination problem.

D. the feasibility of new mass-production technology.

3- When added the added drawbacks of plant expansion are greater than the added benefits, production involves:

A. Constant Economies of Scale

C. Dis-economies of scale.

D. None of the above.

4- When added the added drawbacks of plant expansion are less than the added benefits, production involves:

A. Constant Economies of Scale

B. Economies of Scale.

D. None of the above.

5- What rule should be used to determine the best plant size for each production volume to help maximize profits?