At the efficient scale of production, the long run ATC is Rs 20 and the output is Q. If the market price is Rs 10, the firm would supply .
A
Q
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
2Q
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Q/2
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
0.0
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution
The correct option is D 0.0 The efficient scale of production corresponds to the minimum of the LRAC curve. Hence, the minimum average total cost is Rs 20. Since P < LRAC, the firm's supply would be 0.