The Long-Run Average Cost Curve

question 53

Multiple Choice

The long-run average cost curve:

• A)will rise once the law of diminishing marginal returns begins to apply
• B)will fall once the law of diminishing marginal returns begins to apply
• C)will rise if increasing returns to scale apply
• D)will be vertical if constant returns to scale apply
• E)is based on the assumption that all resources are variable