Question

In choosing the appropriate plant size for a​ single-plant firm during the long​ run, the firm will pick the size whose​ short-run average cost curve generates an average cost that is lowest for the expected rate of output.

True or False?

Answer 1

True

Step-by-step explanation:

As in the long run, firm can alters its existing plant size and examine each short run average cost curve to find the curve that allows it to produce a given level of output at the minimum cost.