Assume That You Observe the Long-Run Average Cost Curve of ACME

question 82

Multiple Choice

Assume that you observe the long-run average cost curve of ACME Bookstores, a national chain.Starting from the point on the curve where output is zero and moving to the right, which of the following lists the behavior of long-run average costs in the correct sequence (that is, which will be observed first, second, etc.) ?

• A)minimum efficient scale; economies of scale; constant returns to scale; diseconomies of scale
• B)economies of scale; constant returns to scale; diseconomies of scale; minimum efficient scale
• C)constant returns to scale; economies of scale; minimum efficient scale; diseconomies of scale
• D)economies of scale; minimum efficient scale; constant returns to scale; diseconomies of scale

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Definitions:

Bronchi

The main passageways into the lungs, which branch off from the trachea and allow air to travel in and out of the lungs.

Mucus

A thick, slippery substance produced by mucous membranes and glands for protection and lubrication in various body parts, such as the nose, throat, and lungs.

Pulmonary Fibrosis

A lung disease that occurs when lung tissue becomes damaged and scarred, making it difficult for lungs to work properly.

Pleurisy

An inflammation of the pleura, the two layers of membranes surrounding the lungs and lining the chest cavity.