Which of the following statements concerning the long-run average cost (LRAC) curve is correct?
A) The LRAC curve represents the least-cost input combination of inputs for producing each level of output.
B) The LRAC curve is derived from a series of short-run marginal cost curves.
C) The short-run cost curve at the minimum point of the LRAC curve represents the least-cost plant size for all levels of output.
D) As output increases, the amount of capital employed by the firm is held constant along the LRAC curve.
A
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Answer the following statement true (T) or false (F)
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a. True b. False
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