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The following are cost data for four different size plants available to a competitive producer: Output AC1 AC2 AC3 AC4 50 $80 $95 $120 $150
The following are cost data for four different size plants available to a competitive producer: Output AC1 AC2 AC3 AC4 50 $80 $95 $120 $150 100 75 80 100 120 150 65 60 75 100 200 75 80 55 75 250 90 100 80 90 Refer to the above information to answer this question. If the market price of this product is $60, which is the best size of plant? Question 1Select one: A. The plant represented by AC1. B. The plant represented by AC2. C. The plant represented by AC3. D. The plant represented by AC4. E. It depends on whether it is the short run or the long run
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