What Property Does the Long-Run Average-Total-Cost Curve Have

question 67

Multiple Choice

What property does the long-run average-total-cost curve have

• A)It is flatter than the short-run average-total-cost curve, but not necessarily horizontal.
• B)It is horizontal.
• C)It is always falling as output increases.
• D)It is always rising as output increases.

---

Definitions:

Households

Entities consisting of one or more people who live together and make joint decisions on consumption and other economic activities.

Firms

Business entities that produce goods or services, usually with the intention of selling them for a profit.

Opportunity Cost

The value of the best alternative forgone when a decision is made to use resources for a particular purpose.

Wage Increases

An upward adjustment in the amount of compensation employees receive for their work, often in response to inflation, productivity, or market demand.