When Economies of Scale Are Present, the LRAC Curve Touches

question 110

Multiple Choice

When economies of scale are present, the LRAC curve touches each short-run ATC curve

• A) to the left of the ATC curve's minimum point.
• B) to the right of the ATC curve's minimum point.
• C) at the ATC curve's minimum point.
• D) at no points.

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Definitions:

Finger-Like Projections

Extensions of tissues or cells resembling fingers, often used to increase surface area for absorption or sensing, like villi in the intestine.

Magnification

The ratio of the size of an image as seen with a microscope to its actual size.

Resolving Power

The ability of a microscope to show fine detail, defined as the minimum distance between two points at which they are seen as separate images; also called resolution.

Resolution

The degree of detail visible in an image or the process of resolving a complex issue or situation.