The Long-Run Average Total Cost (LRATC) Curve

question 203

Multiple Choice

The long-run average total cost (LRATC) curve

• A) indicates the per-unit cost of producing various rates of output with a specific size of plant but variable levels of labor and technology.
• B) indicates the minimum per-unit cost that can be achieved at various output rates when the firm is free to choose among plant sizes.
• C) will be falling when diseconomies of scale are present and rising when economies of scale are present.
• D) is a U-shaped curve.
• E) is both a and d above.

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Definitions:

Origins

in anatomy, refers to the points at which muscles are attached to the stationary bone structures, often serving as the anchor from which the muscle operates.

Patella

The kneecap; a small bone located in front of the knee joint.

Quadriceps Femoris Group

A muscle group located at the front of the thigh, composed of four muscles, primarily responsible for the extension of the knee.

Anterior Leg Muscles

Muscles located at the front of the lower leg primarily responsible for dorsiflexion of the foot and extension of the toes.