If the Long-Run Average Cost Curve Is U-Shaped, the Optimal

question 120

Multiple Choice

If the long-run average cost curve is U-shaped, the optimal scale of production from society's viewpoint is

• A)the minimum efficient scale.
• B)where maximum economic profit is earned by producers.
• C)where firm profit is large enough to finance research and development.
• D)one which guarantees economic profit.

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Definitions:

Psig

Pounds per square inch gauge. Gauge pressure is equivalent to psi, not psia.

Liquid Refrigerant

A substance in liquid form used in refrigeration cycles to absorb and remove heat from a space to cool it.

Ambient Temperatures

The temperatures of the air or environment in which equipment, devices, or materials are situated, affecting their performance and operational requirements.

High-Side

In electrical systems, refers to the part of a circuit that is at a higher potential relative to a common ground.