The Long-Run Average Total Cost Curve

question 427

Multiple Choice

The long-run average total cost curve

• A)displays declining unit costs so long as output is increasing.
• B)indicates the lowest unit costs achievable when a firm has had sufficient time to alter plant size.
• C)has a shape that is the inverse of the law of diminishing returns.
• D)can be derived by summing horizontally the average total cost curves of all firms in an industry.

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