Which of the Following Does NOT Represent a Possible Shape

question 29

Multiple Choice

Which of the following does NOT represent a possible shape of the long-run average cost curve?

• A)downward sloping
• B)upward sloping
• C)U-shaped
• D)vertical

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Definitions:

Reservation Price

The maximum or minimum price at which a consumer is willing to buy or sell a good or service.

Utility Function

A representation in economics that maps a set of goods and services into a numerical level of utility (satisfaction or happiness) that a consumer derives from those goods and services.

Good 1

Typically refers to a specific item or category of goods within an economic model, where multiple goods are being considered for analysis or comparison.

Revenue-maximizing Price

The price level at which a company can generate the maximum total revenue, balancing between price per unit and the quantity sold.