Question

His decision on what price to charge and how much to produce in the long run will be A. based on optimal plant size determination based on cost minimization. B. to charge even higher prices and produce less quantity compared to short run. C. the same as his short run profit maximizing decision. D. dependent on loss minimization principle.

Answer 1

Answer: A. based on optimal plant size determination based on cost minimization

Step-by-step explanation:

The information given isn't complete as there are some diagrams attached which I saw online.

Based on the information gotten, the decision on the price to charge and the quantity to produce in the long run will be based on optimal plant size determination based on cost minimization.

It should be noted that the quantity of goods produced in the long run, and the price that'll be charged will depends on optimal size of the plant. In the long, there can be an alteration of the plant size and therefore, the output and price will be determined by the optimal plant size.