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:

Debt to Assets Ratio

A financial ratio that measures the percentage of a company's assets that are financed by debt, used to gauge a company's financial leverage.

Total Assets

The aggregate of all resources owned by a company, valued in monetary terms.

Creditors

Individuals or institutions to which money is owed by a person or entity.

Profit Margin

Measures the percentage of each dollar of sales that results in net income; computed by dividing net income by net sales.