Where Long-Run Average Cost Equals Short-Run Average Cost

question 48

Multiple Choice

Where long-run average cost equals short-run average cost:

• A) short-run average cost is minimized.
• B) long-run average variable cost equals short-run average variable cost.
• C) long-run average cost equals long-run marginal cost.
• D) long-run average cost is minimized.
• E) long-run marginal cost equals short-run marginal cost.

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Definitions:

Percentage

A portion or part of a whole, expressed as a fraction of 100.

Constants

Fixed values in an equation or model that do not change, unlike variables which can fluctuate.

GDP

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country's borders.

Depression

A deep and prolonged business downturn; the last one occurred in the 1930s.