Which of the Following Statements Regarding a Firm's Long-Run Average

question 187

Multiple Choice

Which of the following statements regarding a firm's long-run average total cost (LRATC) curve and its short-run average total cost (SRATC) curve is true?

• A)The shape of the LRATC is affected by the law of diminishing returns.
• B)The SRATC, but not the LRATC, can be used by a firm's managers for planning.
• C)The LRATC shows the lowest cost at which a firm is able to produce a given level of output when no inputs are fixed.
• D)The contribution of average fixed cost to LRATC is greater than its contribution to SRATC.

---

Definitions:

Chromosome Number

The total number of chromosomes present in the nucleus of a cell, characteristic of each species.

Daughter Cell

A cell that results from the division of a single parent cell, inheriting the genetic material of the parent.

Mitosis

A form of cellular division leading to the creation of two offspring cells, both possessing an identical number and type of chromosomes found in the parent nucleus, usually observed during normal tissue development.

Chromosome Number

The total count of chromosomes within the cell nucleus of a species, crucial for genetic stability and reproduction.