The Long-Run Average Cost (LRAC)curve Shows

question 72

Multiple Choice

The long-run average cost (LRAC) curve shows

• A)the lowest unit cost at which the firm can produce a given output.
• B)the highest unit costs of producing a given output.
• C)the operation of the law of diminishing returns.
• D)what happens to the fixed costs in the long run.
• E)the same as the short-run average cost curve.

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Definitions:

Social Stratification

The division of society into levels, classes, or castes, where individuals and groups are classified based on factors like wealth, income, race, education, and power.

Systemic Discrimination

A form of discrimination that is embedded in the policies, practices, and procedures of organizations or systems, leading to unequal opportunities or outcomes for certain groups.

Fatalistic Belief

The belief that all events are predetermined and therefore inevitable, often leading to a resignation to one's fate.

Culture of Poverty

A fatalistic belief system held by the poor as an adaptation to systemic discrimination.