Asked by Abbie Medina on Jun 29, 2024
Verified
An industry is producing at the least-cost rate of production when
A) marginal cost is greater than average total cost.
B) marginal revenue is greater than price.
C) price and the minimum average total cost are equal.
D) price and marginal revenue are equal.
Least-Cost Rate
An economic principle that emphasizes minimizing production or operation costs while achieving a specific output level.
Average Total Cost
The total cost of production divided by the total quantity produced, indicating the cost per unit of output.
- Assess the conditions conducive to least-costly production and the efficient distribution of resources.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
C
Explanation :
An industry is producing at the least-cost rate of production when price equals the minimum average total cost. This indicates that the firm is producing its output at the lowest possible cost per unit, which is a condition for optimal efficiency in production.
Learning Objectives
- Assess the conditions conducive to least-costly production and the efficient distribution of resources.