Consider the Long- Run Average Cost Curve for a Firm

question 14

Multiple Choice

Consider the long- run average cost curve for a firm.Any point representing a cost and output combination that is below the LRAC curve

• A)is attainable if the firm minimizes its costs according to the "principle of substitution."
• B)represents unattainable cost levels.
• C)may represent actual cost and production levels in the short run.
• D)represents less efficient cost levels than points on the long- run average cost curve.
• E)is attainable only when all factors are variable.

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Definitions:

Cash Recorded

The accounting entry that reflects the actual amount of cash received and recorded by a business during a specific period.

Revenue Journal

A revenue journal is a record used in accounting to keep track of the sales of goods and services that generate revenue for an entity.

Accounts Receivable

Funds that are due to a company from clients for products or services provided on credit.

Fees Earned

Revenue from providing services.