The long-run average cost curve is the
A) change in total product divided by the change in capital when the quantity of labor is constant.
B) change in output resulting from a one-unit increase in the quantity of capital.
C) relationship between the lowest attainable average total cost and output when both the plant size and labor are varied.
D) relationship between the lowest attainable average total cost and output when both the plant size and labor are fixed.
C
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Which of the following questions is a macroeconomic issue?
A) How many more pounds of cookies will a consumer purchase if the price of cookies decreases? B) What effect would a cure for Mad Cow Disease have on the market for beef? C) What is the future growth prospect for an economy? D) How many workers should the owner of a business hire?
Using open market operations to create or reduce deposits has two advantages over other tools. Those advantages are
a. secrecy and security b. precision and effectiveness c. secrecy and effectiveness d. security and precision e. precision and secrecy
The type of good with the largest import in the U.S. is:
A. industrial goods. B. consumer goods. C. automobiles. D. capital goods.
A rule of thumb in the employment of resources is to set
A) marginal revenue product (MRP) equal to marginal factor cost (MFC). B) marginal revenue (MR) equal to marginal cost (MC). C) marginal physical product equal to marginal resource cost. D) none of the above.