What is the correct answer?


The firm producing at the minimum point of the AC curve is said to be:

A. Operating under diminishing cost

B. Making optimum use of plant capacity

C. Operating at excess capacity

D. Operating under increasing costs

Correct Answer :

B. Making optimum use of plant capacity

Related Questions

In arriving at stable equilibrium in cournot model, if one firm decreases… The slope of indifference curve shows: The model which gives us information about price and output changes in… The output where TC = TR & AC = AR: If the production function is homogeneous, the expansion path will be… Under conditions of perfect competition, price in the long-run is equal… Identify the author of The Affluent Society? Law of Returns to Scale shows: We can write ordinal utility function as: Opportunity costs are also known as: In joint-profit maximization cartel, central agency sets the: Chamberline introduces the concept of: The income consumption curve (ICC) is the locus of points of consumer… We can measure consumers surplus with the help of In the long run average costs curve, a firm can change: The longer the period of time, the elasticity of supply will be: The Law of Equi-Marginal Utility refers to: The vertical distance between TVC and TC is equal to: When a consumer is in equilibrium then slope of indifference curve is: Price leadership is associated with: The number of sellers in oligopoly is: The general form of Cobb-Douglas production function is: In respect of which of the following category of goods is consumers surplus… Marginal cost curve cuts the average cost curve: The Law of Diminishing Marginal Returns can be explained in terms of: Equilibrium of a discriminating monopolist requires the fulfillment of… In repeated game, the Prisoners Dillemma can have a: Which of the following is not a characteristic of a perfectly competitive… Some economists refer to iso-product curves as: According to Saint Thomas Aquinas value is determined by God, but prices…