The Long-Run Average Cost Curve

question 101

Multiple Choice

The long-run average cost curve

• A) always falls as output increases.
• B) is the sum of a firm's short-run average cost curves.
• C) shows the lowest average cost facing a firm as it increases output changing both its plant and labour force.
• D) always rises as output increases.
• E) initially rises when output increases and then falls when output increases.

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Definitions:

Xanax

A prescription medication used to treat anxiety and panic disorders, known generically as alprazolam.

Valium

A brand name for diazepam, a medication belonging to the benzodiazepine family, used to treat anxiety, muscle spasms, seizures, and other conditions.

Neurotransmitter Receptors

Proteins on the surface of neurons that bind to neurotransmitters, allowing for the transmission of signals across the synaptic gap.

Post-synaptic Neuron

This refers to the neuron that receives a signal (neurotransmitter) across the synaptic gap from a neuron that has fired (pre-synaptic neuron).