The Long Run Average Cost Curve

question 103

Multiple Choice

The long run average cost curve

• A) is the sum of a firm's short run average cost curves.
• B) shows the lowest average cost facing a firm as it increases output changing both its plant and labor force.
• C) initially rises when output increases and then falls when output increases.
• D) always falls as output increases.
• E) always rises as output increases.

---

Definitions:

Petroleum Sector

An economic sector focused on the exploration, extraction, refining, transportation, and selling of petroleum products.

Oil Royalties

Payments made by oil and gas producing companies to landowners or the government for the right to extract natural resources.

Political Ramifications

The consequences or effects on the political landscape that result from actions, decisions, or policies.

Social Constructionism

Emphasizes that social problems do not emerge spontaneously. Instead, they are contested phenomena whose prominence depends on the ability of supporters and detractors to make the public aware of them.