Exhibit 7.5 -Refer to Exhibit 7.5,which Shows Four Short-Run Average Cost Curves

Multiple Choice

Exhibit 7.5

-Refer to Exhibit 7.5,which shows four short-run average cost curves for different possible plant sizes.If the firm represented in the figure above wants to produce output level q,then,in the long run,it should build a plant size with an average total cost curve of _____

A) 1.
B) 2.
C) 3.
D) 4.
E) either 1 or 3.