How are a firm's short-run and long-run average cost curves related?
a. SRAC is greater than LRAC, which forces the LRAC curve to be upward sloping.
b. SRAC and LRAC slope up or down together, but SRAC is always the steeper of the two curves.
c. The SRAC curve is tangent to and lies above the LRAC curve.
d. The LRAC curve just touches the SRAC curve at its minimum point.
c. The SRAC curve is tangent to and lies above the LRAC curve.
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In economics, scarcity refers to the situation of:
A) optimizing with the use of limited information. B) having more wants than the amount of available resources. C) rationing of available goods and services by the government. D) sellers setting the prices of their products too high for people to be able to afford them.
A factor determining the supply of U.S. dollars in the foreign exchange market is the
A) expected future exchange rate. B) expected future interest rate in the United States. C) U.S. supply of exports. D) expected future interest rate in foreign countries.
Why do economists test their hypotheses?
A) to see whether people are motivated by self-interest B) to see whether their models predict the choices people will make C) to determine whether government policies have effectively achieved their goals D) to learn what people are thinking when they make the choices they do
If an owner of a copy center is interested in knowing which of her employees can make the most copies in one hour, she wants to understand _____.
(A) Which employee has the absolute advantage in making copies. (B) The opportunity cost of employees making copies . (C) Which employee has the comparative advantage in making copies. (D) The resource distribution of her copy center.