If a Firm Is Producing the Level of Output at Which

question 54

Multiple Choice

If a firm is producing the level of output at which short-run average cost equals long-run average cost, then

• A) the firm has chosen the cost-minimizing combination of inputs to produce this level of output.
• B) with a fixed amount of capital, short-run average cost is greater than long-run average cost at any other level of output.
• C) the firm has chosen the profit-maximizing level of output.
• D) both a and b
• E) all of the above

---

Definitions:

February

The second month of the year in the Gregorian calendar, commonly associated with the shortest month of 28 days, except in a leap year when it has 29 days.

Cash Collections

The process or total amount of money received by a company from its customers for goods or services offered.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

May

The fifth month of the Julian and Gregorian calendars, often used in financial and operational planning calendars.