If the Long-Run Average Cost Curve Is U-Shaped, the Optimal

question 120

Multiple Choice

If the long-run average cost curve is U-shaped, the optimal scale of production from society's viewpoint is

• A)the minimum efficient scale.
• B)where maximum economic profit is earned by producers.
• C)where firm profit is large enough to finance research and development.
• D)one which guarantees economic profit.

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Definitions:

Subsistence Farmers

Farmers who primarily grow food and rear animals for their own family's consumption, with little to no surplus for trade.

Sustainable

Relating to practices and methods that meet current needs without compromising the ability of future generations to meet theirs, often in the context of environmental conservation.

Temperate Deciduous Forests

Biomes characterized by four distinct seasons and trees that lose their leaves annually; found in temperate zones across the globe.

Greenhouse Gases

Trace gases in the atmosphere that allow the sun’s energy to penetrate to Earth’s surface but do not allow as much of it to escape as heat