Exhibit 7-15 Long-Run Average Cost

question 132

Multiple Choice

Exhibit 7-15 Long-run average cost
-If the firm represented in Exhibit 7-15 is operating with a plant whose size corresponds to short-run average total cost curve A, the level of output that would minimize its short-run average total cost is:

• A) 500 units per week.
• B) 1,000 units per week.
• C) 1,500 units per week.
• D) 2,000 units per week.

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Definitions:

Note

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Dishonored

A term often used in finance to describe the refusal of a bank to pay a check or draft presented against insufficient funds.

Payable

Refers to an amount of money that must be paid, typically in the context of bills or debts.

Insurance Agent

a professional who sells, solicits, or negotiates insurance policies on behalf of an insurance company to clients.