When Long Run Average Costs Reach Their Minimum, They

question 26

Multiple Choice

When long run average costs reach their minimum, they:

• A)are less than long run marginal cost.
• B)also minimize the long run marginal cost.
• C)are equal to long run marginal cost.
• D)are greater than long run marginal cost.

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Definitions:

Markup Percent

The percentage increase on the cost price of goods to arrive at the selling price.

Selling Price

The amount of money for which a product or service is sold to customers.

Markup Percent

The percentage added to the cost price of goods to cover overhead and profit.

Markup Percent

The markup on the original cost of goods intended to cover running costs and generate profit.