The Point of Tangency Between the Short-Run Average Total Cost

question 22

Multiple Choice

The point of tangency between the short-run average total cost (SRATC) curve and the long-run average cost (LRAC) curve occurs

• A)at the point of minimum SRATC.
• B)at a point where average total cost is falling but the marginal cost is rising.
• C)at a point where both the average total cost and the marginal cost are rising.
• D)at an output level for which the quantity of the fixed factor is optimal.
• E)only when the LRAC curve is at its minimum.

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Definitions:

Independent Variable

The independent variable is the condition or factor that is manipulated by a researcher to determine its effect on the dependent variable.

Aggressive Behaviour

Actions or conduct that intends to cause harm or exert dominance over another individual.

Experimental Group

A group of subjects in an experiment who are exposed to the variable under study, allowing researchers to measure the effect of the variable on the group.

Descriptive/Correlational

A type of research method that involves observing and describing the behavior of a subject without influencing it in any way.