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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