A firm's long-run average cost curve
A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed.
B) is the sum of all of its short-run average cost curves.
C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output.
D) all of the above
C
You might also like to view...
In the early 1960s, the discovery of the Phillips curve relationship caused economists and policy makers to think that they understood the trade-offs between: a. aggregate supply and aggregate demand. b. interest rate and investment. c. inflation and unemployment
d. monetary and fiscal policy. e. rule-making and discretionary policy.
In a measure of aggregate expenditures for the national economy, net exports
a. are always positive. b. are always negative. c. may be either positive or negative. d. are not counted.
Which one of these groups has the highest poverty rate?
A. The elderly B. Children C. White males over 50 D. Working class women
The short-run industry supply curve for a perfectly competitive industry is the
A. vertical sum of the individual firms' marginal cost curves above AVC. B. horizontal sum of the individual firms' marginal cost curves above ATC. C. horizontal sum of the individual firms' marginal cost curves above AVC. D. vertical sum of the individual firms' marginal cost curves above ATC.