The Figure Given Below Shows Three Short Run Average Total

question 24

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-If a firm experiences constant returns to scale throughout:

• A)the long-run average-total-cost curve is negatively sloped.
• B)the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their positively sloped portion.
• C)the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at their minimum points.
• D)the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their negatively sloped portion.
• E)the long-run average-total-cost curve is positively sloped.

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Definitions:

Balanced Scorecard

A strategic planning and management system used by organizations to communicate objectives, monitor performance, and evaluate their progress towards achieving strategic goals.

Financial Measures

Quantitative indicators used to assess the financial stability, performance, and liquidity of a business entity.

Learning and Growth

Refers to the strategies and processes that facilitate the continuous improvement and development of employees, systems, and organizational capabilities.

Balanced Scorecard

A strategic planning and management system used by organizations to align business activities to the vision and strategy, improve internal and external communications, and monitor organizational performance against strategic goals.