(Answered) c. At what output rate is average total cost minimized?unitsc. At what output rate is average total…

➤ When should a firm produce at the ATC-minimizing output?
Producing at the ATC-minimizing output is useful for long-run planning and selecting efficient plant size. It gives the lowest cost per unit, but it is not always profit-maximizing. Use it when capacity decisions or average-cost pricing matter, and compare it to the profit-maximizing quantity determined by price and marginal cost.