Which of the Following Statements Concerning Long-Run and Short-Run Cost

question 98

Multiple Choice

Which of the following statements concerning long-run and short-run cost curves is correct?

• A)A short-run average cost curve can fall below the long-run average cost curve.
• B)The short-run average cost curve is tangent to the long-run average cost curve for all levels of output of the fixed factor.
• C)The long-run average cost curve envelops a whole family of short-run marginal cost curves.
• D)The minimum point of the long-run average cost curve will correspond to the minimum point on a single short-run average cost curve.
• E)Both the long-run and short-run average cost curves show the lowest cost of producing any output when all factors are variable.

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Definitions:

Cognitive Errors

Faulty patterns of thinking that contribute to misinterpretations of reality or to emotional distress.

Beck

Refers to Aaron T. Beck, a psychiatrist known for his work in developing cognitive therapy, now known as cognitive-behavioral therapy (CBT).

Psychosocial History

An individual’s past experiences and personal history regarding social interactions and psychologically significant events, often reviewed in therapeutic settings to better understand current issues.

Emotional Experiencing

The process of becoming fully aware of and expressing one's emotions as a therapeutic practice.