A Short-Run Average Total Cost Curve and a Long-Run Average

question 135

Multiple Choice

A short-run average total cost curve and a long-run average cost curve are tangent

• A)where the short-run cost curve is downward sloping.
• B)where the short-run cost curve is upward sloping.
• C)when the plant size is at the optimal level for that level of output.
• D)where the short-run cost curve is downward sloping and the plant size is optimal.
• E)by coincidence.

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