Which of the Following Statements Concerning the Long-Run Average Cost

question 26

Multiple Choice

Which of the following statements concerning the long-run average cost (LRAC) curve is correct?

• A)The LRAC curve represents the least-cost input combination of inputs for producing each level of output.
• B)The LRAC curve is derived from a series of short-run marginal cost curves.
• C)The short-run cost curve at the minimum point of the LRAC curve represents the least-cost plant size for all levels of output.
• D)As output increases, the amount of capital employed by the firm is held constant along the LRAC curve.

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