The Long-Run Average-Cost Curve Shows How the Average Cost of Production

question 141

True/False

The long-run average-cost curve shows how the average cost of production varies when the firm is perfectly flexible in choosing its inputs.

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Definitions:

Parabola

The graph of a quadratic function, represented as a symmetric curve that opens either up or down.

Focus

A point used in the definitions of conic sections, such as ellipses and hyperbolas, from which distances are measured to define the curves.

Vertex

The point where two lines, or edges, of a geometric figure meet; in the context of a parabola, the peak or the lowest point, depending on its orientation.

Circle

A round plane figure, every point of which is equidistant from a fixed center point, defined by the equation (x-h)^2 + (y-k)^2 = r^2 in a coordinate plane.