In a Constant-Cost Industry, Price Always Equals

question 99

Multiple Choice

In a constant-cost industry, price always equals:

• A) LRMC and minimum LRAC.
• B) LRMC and LRAC, but not necessarily minimum LRAC.
• C) minimum LRAC, but not LRMC.
• D) LRAC and minimum LRMC.
• E) minimum LRAC and minimum LRMC.

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Definitions:

Reaction Time

The interval of time between the presentation of a stimulus and the initiation of the muscular response to that stimulus.

Stimulus Response

A concept in psychology that describes how an individual reacts to a stimulus; it's the basic unit of learning and behavior.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without any prior learning or conditioning.

Concrete Operational

A stage in Piaget’s theory of cognitive development where children gain the ability to think logically about concrete events.