The Long-Run Average Total Cost Curve Is Often Bumpy Because

question 184

Multiple Choice

The long-run average total cost curve is often bumpy because

• A)capital can be varied only in tiny increments.
• B)capital can often be varied only in large increments.
• C)short-run average variable cost curves are bumpy.
• D)short-run average total cost curves are bumpy
• E)capital cannot be increased with labor at the same time.

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Definitions:

Positive Statement

An objective statement based on factual information and evidence, which can be tested and verified as true or false.

Production Possibilities Frontier

A graph that illustrates the highest possible production levels of two products, based on available resources and technological capabilities.

Scarcity

A basic economic challenge where human desires appear endless but the resources available are finite.

Positive Statements

Assertions about the world that are factual and can be tested for accuracy.