The Long-Run Average Total Cost (LRATC) Curve

question 203

Multiple Choice

The long-run average total cost (LRATC) curve

• A) indicates the per-unit cost of producing various rates of output with a specific size of plant but variable levels of labor and technology.
• B) indicates the minimum per-unit cost that can be achieved at various output rates when the firm is free to choose among plant sizes.
• C) will be falling when diseconomies of scale are present and rising when economies of scale are present.
• D) is a U-shaped curve.
• E) is both a and d above.

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Definitions:

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society feel uncomfortable with ambiguity and uncertainty.

Ambiguity

The quality of being open to more than one interpretation; lack of definiteness or clarity.

Assertiveness

A communication style characterized by confidently expressing one’s thoughts, feelings, and needs directly and respectfully.

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience, often manifesting as bias or discrimination.