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:

AASB 133

Refers to the Australian Accounting Standards Board standard on Earnings per Share, outlining how to calculate and present earnings per share in financial statements.

Publicly Traded

Refers to companies or securities that are available for buying and selling on the public stock exchanges.

Time-weighting Factor

A calculation used to adjust the influence of specific data points in an averaging or forecasting method based on their occurrence in time.

Ordinary Shares

Shares of a company that entitle the holder to dividends as declared and give them voting rights in company meetings.