Which of the Following Statements Concerning the Long-Run Average Cost

question 26

Multiple Choice

Which of the following statements concerning the long-run average cost (LRAC) curve is correct?

• A)The LRAC curve represents the least-cost input combination of inputs for producing each level of output.
• B)The LRAC curve is derived from a series of short-run marginal cost curves.
• C)The short-run cost curve at the minimum point of the LRAC curve represents the least-cost plant size for all levels of output.
• D)As output increases, the amount of capital employed by the firm is held constant along the LRAC curve.

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Definitions:

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another in the nervous system.

Brain

The brain is the complex organ located in the skull that serves as the center of the nervous system in all vertebrate and most invertebrate animals, responsible for processing sensory information, regulating bodily functions, and enabling thought, memory, and emotion.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, transmitting neural signals between the brain and the body.

Stem Cells

Undifferentiated biological cells that can differentiate into specialized cells and can divide to produce more stem cells.