Which Statement Is True

question 8

Multiple Choice

Which statement is true?

• A)Long-run average costs are the same or more than short-run average costs.
• B)Long-run average costs are increasing due to diminishing marginal product.
• C)Long-run average costs are the lower envelope of short-run average cost curves.
• D)Long-run average costs equal long-run marginal costs for every level of output.
• E)None of the above.

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Definitions:

Stimulus-Driven

Describes a process or response that is directly influenced by external factors or stimuli, rather than being internally initiated.

Flexible

Able to adjust readily to different conditions or circumstances; versatile and adaptable.

Analogy

A comparison between two things, typically for the purpose of explanation or clarification, showing how they are similar in some respects.

Correspondence

The relationship or similarity between two or more entities or phenomena; in communication, it refers to the exchange of letters or messages.