Related to the Economics in Practice on Page 195: If

question 95

Multiple Choice

Related to the Economics in Practice on page 195: If the long-run average cost curve in an industry has a long, flat section, which of the following must be true?

• A) There is no single point on the curve that is the best.
• B) Small firms have higher average costs than large firms.
• C) Existing firms have no incentive to expand.
• D) There would be no difference between the industry's short-run average cost curve and its long-run average cost curve.