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:

Front View

The view of an object as seen from the front, typically used in technical drawing to show the most details.

Projection Used

Refers to the method of projection adopted in technical drawing or design, such as orthographic, isometric, or perspective projection.

Engineering Drawing

A detailed drawing prepared by engineers to visually represent the specifications of a project or a part.

Manufacturer Drawing

A detailed diagram or blueprint created by the manufacturer that outlines the specifications, dimensions, and assembly of a product.