Consider the Short-Run and Long-Run Cost Curves for a Firm

question 30

Multiple Choice

Consider the short-run and long-run cost curves for a firm.If there is an improvement in the firm's technology,

• A)the firm will move to a lower point on both its long-run and short-run average cost curves.
• B)the firm will move to a lower point on its long-run average cost curve only.
• C)both the long-run and short-run average cost curves will shift downward.
• D)there will be a downward shift in the long-run average cost curve but not in the short-run average cost curve.
• E)there will be no change in the cost curves in the long run.

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Definitions:

Note

A promise by the maker of the note to pay the payee of the note.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Negotiable Instruments

Financial documents that guarantee the payment of a specified sum of money, either on-demand or at a set time.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize statutes across the states to facilitate easier interstate commerce.