Which of the Following Is CORRECT

question 414

Multiple Choice

Which of the following is CORRECT?

• A) A firm's short-run average cost curve is derived from a series of long-run average cost curves.
• B) A firm's long-run average cost curve is derived from a series of short-run average cost curves.
• C) A firm's long-run total cost is the difference between its long-run fixed cost and long-run variable cost.
• D) Both answers A and C are correct.

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Definitions:

Organic Product

A compound containing carbon that has been formed as the result of a chemical reaction involving organic molecules.

Reaction

A method where substances combine and transform into one or more distinct substances possessing unique chemical and physical characteristics.

Organic Product

A natural substance or compound obtained through biochemical processes from organisms or their parts.

Reaction

A process in which substances interact to form new substances with different properties, involving a reorganization of atoms or molecules.