Use the Following to Answer Question(s): Long-Run Average Cost

question 10

Multiple Choice

Use the following to answer question(s) : Long-Run Average Cost

-(Exhibit: Long-Run Average Cost) In the region from O to A, output per period is _______ and long-run average cost is _______ .

• A) decreasing; increasing
• B) increasing; decreasing
• C) increasing; increasing
• D) increasing; remaining the same

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Definitions:

Exempt

Not subject to an obligation, duty, or requirement; often used in the context of income that is not subject to taxation.

Capital Gains Rates

The tax rates applied to the profit made from selling an asset for more than its purchase price.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Fair Market Value

The estimated price at which an asset would sell in the marketplace when both buyer and seller are reasonably knowledgeable and willing parties.