A Firm's Long-Run Average Cost Curve

question 57

Multiple Choice

A firm's long-run average cost curve

• A)shows the minimum cost of producing each possible level of output with a fixed factor.
• B)shows the relationship between marginal cost and output given that the economically most efficient method of production is employed.
• C)is the boundary between attainable and unattainable cost levels,with known production technologies and given factor prices.
• D)is horizontal in most situations.
• E)is an envelope of short-run average variable cost curves.

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Definitions:

Courts

Institutions established by governments to administer justice in civil, criminal, and administrative matters through the application of law.

Injunction

A judicial order that requires a party to do or to refrain from doing specific acts, used to prevent harm or to maintain the status quo during litigation.

Unionization

is the process by which workers form or join a union to collectively negotiate with their employers regarding wages, working conditions, and other employment related matter.

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A legal directive issued by a court requiring a party to do or refrain from doing specific acts.