Which of the Following Would Cause a Firm's LRAC Curve

question 68

Multiple Choice

Which of the following would cause a firm's LRAC curve to shift up?

• A)An increase in the amount of "learning by doing."
• B)An increase in the price of labor, all else constant.
• C)An increase in the amount of output produced by the firm.
• D)A decrease in the amount of capital employed by the firm.

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Definitions:

Cost-Plus Pricing

A selling price determination approach where a fixed markup is added to the per unit cost of the product.

Mark-Up Percentage

The additional percentage included in the goods' cost price to account for overhead expenses and profit in the sales price.

Time And Material Pricing

A pricing method where the customer is charged based on the time spent on a service and the cost of materials used.

Labour

The measure of human work or effort used in the production of goods and services.