A Firm's Long-Run Average Cost Curve

question 488

Multiple Choice

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

---

Definitions:

Budgeted Production

The planned level of production output scheduled over a specific period, based on forecasted sales demand.

Budgeted Sales

Forecasted revenue figures for a specific period based on projected sales volume and selling price, crucial for financial planning and performance evaluation.

Budgeted Production

The quantity of products that a company plans to produce over a specific period, as outlined in the budgeting process.

Direct Labor-Hours

The cumulative hours that employees engaged in the production process have worked.