Which of the Following Statements Regarding a Firm's Long-Run Average

question 187

Multiple Choice

Which of the following statements regarding a firm's long-run average total cost (LRATC) curve and its short-run average total cost (SRATC) curve is true?

• A)The shape of the LRATC is affected by the law of diminishing returns.
• B)The SRATC, but not the LRATC, can be used by a firm's managers for planning.
• C)The LRATC shows the lowest cost at which a firm is able to produce a given level of output when no inputs are fixed.
• D)The contribution of average fixed cost to LRATC is greater than its contribution to SRATC.

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Definitions:

Allyl Tosylate

An organic compound where an allyl group is bonded to a tosylate group, used typically as an intermediate in organic synthesis for nucleophilic substitution reactions.

Oct-1-ene

A linear alkene with the double bond starting from the first carbon atom.

Resonance Structures

Different ways of drawing the same molecule that depict the possible locations of pi electrons or nonbonded electrons within the molecule.

Regiochemistry

This term relates to the orientation of the addition or substitution of a chemical bond in a molecule, determining the structure of the resulting product.