Which of the Following Statements Most Accurately Makes the Distinction

question 128

Multiple Choice

Which of the following statements most accurately makes the distinction between the long run and the
Very-long run with respect to the long-run average cost LRAC) curve?

• A) In the long run, the LRAC curve is shifting down, whereas in the very -long run the firm is moving along the existing LRAC curve.
• B) In the long run, the firm is moving along the existing LRAC curve, whereas in the very -long run, the LRAC curve is shifting down.
• C) In the long run, the LRAC curve is shifting up, whereas in the very-long run the firm is moving along the existing LRAC curve.
• D) In the long run, the firm is moving along the existing LRAC curve, whereas in the very -long run, the LRAC curve is shifting up.
• E) There is no distinction between the long run and the very-long run with respect to the LRAC curve.

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Definitions:

Systems

Complex networks of interrelated components that work together to achieve some objective.

Kaizen Approach

A philosophy or practice focusing on continuous improvement in all aspects of life, particularly in business.

Operational Decisions

Decisions made in the day-to-day functioning of a company that are routine and aim to improve effectiveness and efficiency.

Radical Shifts

Significant changes that drastically alter the existing order, perceptions, or conditions in a given context, often leading to a new paradigm.