A Firm's Long-Run Average Cost Curve

question 37

Multiple Choice

A firm's long-run average cost curve

• A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are variable.
• B) is U-shaped.
• C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output.
• D) all of the above

---

Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Prepaid Insurance

Payments made in advance for insurance services, which is recorded as an asset on the balance sheet and expensed over the period the insurance coverage is applicable.

Adjusting Journal Entry

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Insurance Premium

The amount of money an individual or business pays for an insurance policy, which provides financial protection against losses.