The Long-Run Average Cost Curve

question 208

Multiple Choice

The long-run average cost curve

• A) is an upside down U-shape.
• B) is constructed using the short-run marginal cost curves.
• C) shows economies and diseconomies of scale.
• D) Both answers A and B are correct.
• E) Both answers A and C are correct.

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Definitions:

Public Interest

The welfare or well-being of the general public and society as a whole, often considered in policy-making and law.

Efficient Combination

The optimal mix of goods and services produced with given resources to achieve maximum value or output.

Total Quantity

The overall amount or volume of a product or resource available or produced.

Unit of Output

The measurement of what is produced or accomplished within a given timeframe or per cycle of operation, typically associated with productivity.