The long-run average cost curve
A) is the sum of a firm's short-run average cost curves.
B) shows the lowest average cost facing a firm as it increases output changing both its plant and labor force.
C) initially rises when output increases and then falls when output increases.
D) always falls as output increases.
E) always rises as output increases.
B
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A firm should consume physical capital until:
A) the value of the total product of physical capital equals the price of physical capital. B) the value of the average product of physical capital equals the price of physical capital. C) the value of the marginal product of physical capital equals the price of physical capital. D) the value of the marginal product of physical capital equals the value of the marginal product of labor.
Examples of off-balance-sheet activities include
A) trading activities. B) extending loans to depositors. C) borrowing from other banks. D) selling negotiable CDs.
Suppose the new doctor you found in the yellow pages turns out to be a charlatan. This is an example of
a. natural selection b. moral hazard c. hidden actions d. external costs e. hidden characteristics
Which of the following is not a durable good?
A) furniture B) automobile C) clothing D) refrigerator