For a typical firm, the long-run average total cost curve:
A. is lower than the short-run average total cost curves.
B. is tangent to each possible short-run average total cost curve at one point.
C. intersects each possible short-run average total cost curve at two points.
D. passes through the minimum points of all possible short-run average variable cost curves.
Answer: B
You might also like to view...
A good example of _______ is the merger between a steel firm and an ice cream firm
a. a horizontal merger b. a vertical merger c. a conglomerate merger d. either a horizontal or vertical merger, depending on whether the oligopoly is balanced or unbalanced e. either a horizontal or vertical merger, depending on the market shares of the two companies
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
If nominal GDP is $7,700 billion and M1 is $1,000 billion, then velocity is
A. 10.7. B. 7.7. C. 7.1. D. 7.0.
Profits earned by subsidiary are taxed even if it is not repatriated to the parent company as dividends because they are considered as income for the parent company.
A. True B. False C. Uncertain