A Firm's Long-Run Total Cost Curve Is Given by LTC

question 139

Multiple Choice

A firm's long-run total cost curve is given by LTC = 2,000Q - 10Q² + 1/3Q³, and long-run marginal cost is given by LMC = 2,000 - 20Q + Q². What is the quantity of output that minimizes long-run average total cost?

• A) 15
• B) 165
• C) 500
• D) 210

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Definitions:

Absolute Advantage

A monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item.