A Short-Run Average Total Cost Curve Will Touch the Long-Run

question 61

Multiple Choice

A short-run average total cost curve will touch the long-run average cost curve at a level of output only

• A)where the short-run cost curve is downward sloping.
• B)where the short-run cost curve is upward sloping.
• C)when the quantity of the fixed factor being employed is at the optimal level for that level of output.
• D)where the short-run cost curve is downward-sloping and the quantity of the fixed factor is optimal.
• E)by coincidence.