A Firm's Long- Run Average Cost Curve

question 88

Multiple Choice

A firm's long- run average cost curve

• A) shows the relationship between marginal cost and output given that the economically most efficient method of production is employed.
• B) is an envelope of short- run average variable cost curves.
• C) shows the minimum cost of producing each possible level of output with a fixed factor.
• D) is the boundary between attainable and unattainable cost levels, with known production technologies and given factor prices.
• E) is horizontal in most situations..

---

Definitions:

Fundamental Niche

The entire set of conditions under which an organism can survive and reproduce without the presence of competition or predators.

Competition For Food

occurs when two or more organisms or species vie for the same food resources in their habitat, which can influence the population and distribution of the species involved.

Ecological Niche

The role and position a species has in its environment, including all its interactions with the biotic and abiotic factors.

Resource Requirements

The necessary inputs and materials needed for a process, organization, or system to function properly.