Which of the Following Statements Concerning the Long-Run Average Cost

question 26

Multiple Choice

Which of the following statements concerning the long-run average cost (LRAC) curve is correct?

• A)The LRAC curve represents the least-cost input combination of inputs for producing each level of output.
• B)The LRAC curve is derived from a series of short-run marginal cost curves.
• C)The short-run cost curve at the minimum point of the LRAC curve represents the least-cost plant size for all levels of output.
• D)As output increases, the amount of capital employed by the firm is held constant along the LRAC curve.

---

Definitions:

Behaviorists

Psychologists who focus on observable behavior and the ways in which learning influences behavior, often through the principles of conditioning.

Unconscious Thoughts

Mental processes that occur without an individual's awareness, influencing behaviors and perceptions.

Environment Molds

Influences from an individual's surroundings that shape their behaviors, attitudes, and development.

Methodological Behaviorist

A type of behaviorism that focuses on observable behaviors and the relationships between stimuli and responses, excluding mental states.