What Does the Long-Run Average Cost Curve Show

question 147

Multiple Choice

What does the long-run average cost curve show?

• A)The lowest average cost of producing every level of output in the long run.
• B)Where the most profitable level of output occurs.
• C)The average cost of producing where diminishing returns are not present.
• D)The plant size or scale that the firm should build.

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Definitions:

Business Costs

Business costs entail the expenses associated with the day-to-day operations of a business, including but not limited to production, labor, materials, and overhead costs.

Social Power

The ability of an individual or group to influence or control others within a social structure, often used to achieve personal or collective goals.

Whistle Blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.

Chain Of Command

The formal line of authority and communication in an organization, from the highest to the lowest levels.