A Firm's Long-Run Average Cost Curve

question 488

Multiple Choice

A firm's long-run average cost curve

• A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed.
• B) is the sum of all of its short-run average cost curves.
• C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output.
• D) all of the above

---

Definitions:

Investment Account

An account held at a financial institution that contains investments like stocks, bonds, mutual funds, and ETFs, potentially helping the owner achieve long-term financial goals.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Subsidiary

A company controlled by another company (the parent company) through ownership of more than 50% of its voting stock.

Goodwill

An intangible asset that arises when a buyer acquires an existing business and pays more than the fair value of the identifiable net assets.