A Short-Run Average Total Cost Curve Will Touch the Long-Run

question 61

Multiple Choice

A short-run average total cost curve will touch the long-run average cost curve at a level of output only

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

---

Definitions:

Height

The measurement of someone or something from base to top or from the ground to its highest point.

International Communicator

An individual skilled in effectively conveying messages and interacting with people across different cultures and languages.

Preferred Values

The ideals or principles that are most important to an individual, group, or organization and guide behavior and decision making.

Influenced

The capacity to have an effect on the character, development, or behavior of someone or something.