The Long-Run Average Cost Function Reaches a Minimum Where

question 56

Multiple Choice

The long-run average cost function reaches a minimum where:

• A) dLAC/dQ = 0.
• B) LTC = LAC.
• C) dTFC/dQ = 0.
• D) dLMC/dQ = 0.
• E) dLTC/dQ = 0.

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Definitions:

Positive Accounting Theory

A theory that explains why firms elect certain accounting practices based on hypotheses about management behavior.

Ownership

The state or fact of exclusive rights and control over property, which can be an object, land/property, or intellectual property.

Control

In the context of business, control refers to the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often achieved through ownership of more than half of the voting rights or otherwise.