If a Firm Is Producing the Level of Output at Which

question 62

Multiple Choice

If a firm is producing the level of output at which short-run average cost equals long-run average cost,then

• A)the firm has chosen the cost-minimizing combination of inputs to produce this level of output.
• B)with a fixed amount of capital,short-run average cost is greater than long-run average cost at any other level of output.
• C)the firm has chosen the profit-maximizing level of output.
• D)both a and b
• E)all of the above

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Definitions:

Logistical Functions

The process of acquiring, creating, and delivering goods and services in the appropriate amounts to the consumer or ultimate location.

Facilitating Functions

include activities that help in the smooth execution of transactions and exchanges in the marketplace, such as logistics, financing, and information provision.

Purchasing Products

The process of acquiring goods or services to fulfill the needs or requirements of a business or consumer.

Resale

The act of selling a product or service to another party after it has been purchased from the original seller.