The Long Run Average Cost Curve

question 103

Multiple Choice

The long run average cost curve

• A) is the sum of a firm's short run average cost curves.
• B) shows the lowest average cost facing a firm as it increases output changing both its plant and labor force.
• C) initially rises when output increases and then falls when output increases.
• D) always falls as output increases.
• E) always rises as output increases.

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Definitions:

Usual

Usual refers to what is common, customary, or typically occurs in a given context, frequently encountered or expected based on past experiences or norms.

Self-handicapping Strategy

A cognitive strategy where an individual deliberately impedes their own progress towards a goal in order to maintain self-esteem in the face of failure.

Self-esteem

The subjective evaluation of one's own worth or value, often affecting confidence and mental health.

Excuses

Justifications or reasons given to explain why something was done or not done, often to avoid blame or responsibility.