The Long-Run Average Cost Curve Is the Relationship Between the Lowest

question 58

Multiple Choice

The long-run average cost curve is the relationship between the lowest attainable average total cost and output, when plant size is ________ and labour is ________. The long-run average cost curve is made up of the segments of individual average ________ cost curves with the lowest average ________ cost for a given output.

• A)varied; varied; variable; variable
• B)varied; varied; total; total
• C)varied; held constant; variable; variable
• D)held constant; varied; total; total
• E)held constant; varied; variable; variable

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Definitions:

Negative Profitability

A financial situation where a business or organization incurs more expenses than revenues, leading to a net loss.

Product Life Cycle

A concept that describes the stages a product goes through from introduction to growth, maturity, and decline in the market.

Industry

A group of companies that operate in the same segment of the economy, producing or providing similar products, services, or sources of revenue.

Price-Based Competition

A competitive strategy focusing on setting prices lower than competitors to attract price-sensitive customers.