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:

Probabilities

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Reliable Historical Data

Trustworthy and dependable data from the past, used for research, analysis, or decision making, which has been accurately recorded and preserved.

Subjective Probabilities

Estimates of the likelihood of events based on personal judgment or experience, rather than on objective data or statistical analysis.

Past Experience

Refers to the knowledge, skills, and achievements a person has accumulated from previous job roles, education, or life situations.