Which of the Following Would Cause a Firm's LRAC Curve

question 68

Multiple Choice

Which of the following would cause a firm's LRAC curve to shift up?

• A)An increase in the amount of "learning by doing."
• B)An increase in the price of labor, all else constant.
• C)An increase in the amount of output produced by the firm.
• D)A decrease in the amount of capital employed by the firm.

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Definitions:

IQ

Intelligence Quotient, a score derived from standardized tests designed to measure human intelligence.

Predictor

A variable or measure that forecasts or estimates a future event or outcome based on current or past data.

Aptitude Test

A standardized test designed to measure an individual's potential to acquire skills or knowledge.

Numerical Ability

The capacity to use and understand numbers, including the skill to perform arithmetic operations, understand their use in quantifying objects, and recognizing their symbols.