Exhibit 7.4 -Refer to Exhibit 7.4,which Shows Short-Run Average Cost Curves.For Output

Multiple Choice

Exhibit 7.4

-Refer to Exhibit 7.4,which shows short-run average cost curves.For output between q_a and q_b,when is average cost the lowest?

A) when the plant is large
B) when the plant is medium-size
C) when the plant is small
D) at an output level less than q
E) at an output level more than q_b