The Least-Cost Way of Producing Each Particular Rate of Output

question 7

Multiple Choice

The least-cost way of producing each particular rate of output is represented by the tangency points between the short-run average cost curves and the _____

• A)total cost curve.
• B)short-run average total cost curve.
• C)average variable cost curve.
• D)long-run average cost curve.
• E)marginal cost curve.

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Definitions:

Decision Making

The process(es) by which an individual selects one course of action from among alternatives.

Problem Solving

The process of finding solutions to difficult or complex issues.

Deductive Reasoning

A process of logical reasoning from one or more statements (premises) to reach a logically certain conclusion.

Modus Ponens

A logical argument form and a rule of inference that, if a premise implies a conclusion and the premise is true, then the conclusion must also be true.