We Can Construct a LRAC Curve from a Succession of SRAC

question 78

Multiple Choice

We can construct a LRAC curve from a succession of SRAC curves. We call this LRAC curve:

• A) the exponential curve
• B) the envelope curve
• C) the expansion curve
• D) the encompass curve

---

Definitions:

Profit Made

The revenue remaining after all expenses have been deducted from total sales.

Derivative Action

A lawsuit brought by a corporation's shareholder on behalf of the company against a third party, often for breach of fiduciary duty.

Shareholder

An individual or entity that owns shares in a company, giving them a claim on part of its assets and earnings.

Pre-emptive Rights

Rights that allow existing shareholders to purchase additional shares in a company before new shares are offered to the public, to maintain their proportional ownership.