Which of the Following Statements Is (Are) TRUE

question 153

Multiple Choice

Which of the following statements is (are) TRUE?

• A) Short-run average total cost curves intersect the long-run average total cost curve at its minimum point.
• B) It is not possible for two short-run average total cost curves to cross.
• C) The long-run average total cost curve is derived by tracing out the lower envelope of the firm's short-run average total cost curves.
• D) The long-run average total cost curve indicates that it is more costly to produce output in the long run, especially when input prices are rising because of inflation.

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Definitions:

Mental Shortcuts

A general term for heuristics, which are simple, efficient rules, used by the brain to form judgments and make decisions.

Midwest

A region in the United States known for its geographical location in the central part of the country and its agricultural and industrial output.

East Coast

A term typically referring to the eastern seaboard of the United States, known for its significant historical, financial, and cultural centers.

Heuristics

Heuristics are mental shortcuts or simple strategies used to make quick and efficient decisions or solve problems, often employed when facing complex issues or incomplete information.