The Long-Run Average Cost Curve Shows

question 294

Multiple Choice

The long-run average cost curve shows

• A)the lowest average cost of producing every level of output in the long run.
• B)where the most profitable level of output occurs.
• C)the average cost of producing where diminishing returns are not present.
• D)the plant size or scale that the firm should build.

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Definitions:

Economic Cycles

Fluctuations in economic activity experienced by a country or the global economy over time, including periods of expansion, peak, contraction, and trough.

Pension Plans

Financial programs established by employers or governments to provide income to employees after retirement.

Corporate Restructuring

The process of reorganizing the structure of a corporation to increase profitability, efficiency, or adapt to a changing environment.

Demotion

A reduction in rank, position, or status of an employee within an organization.