Which of the Following Statements with Respect to the Figure $\mathrm { SAC } _ { 1 }$

question 49

Multiple Choice

Which of the following statements with respect to the figure below is INCORRECT?

• A)All the possible short-run average cost curves that correspond to the different plant sizes are shown as \(\mathrm { SAC } _ { 1 }\) - \(\mathrm { SAC } _ { 8 }\) .
• B)If the anticipated permanent rate of output per unit time period is \(\mathrm { Q } _ { 1 }\) in panel (a),the optimal plant would correspond to \(\mathrm { SAC } _ { 1 }\) .
• C)If the permanent rate of output increases to \(\mathrm { Q } _ { 2 }\) in panel (a),it will be more profitable to have a plant size corresponding to \(\mathrm { SAC } _ { 3 }\) .
• D)The long-run average cost curve LAC in panel (b)is sometimes called the planning curve representing the locus (path)of points.

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Definitions:

Chameleon Effect

The unconscious mimicry of the behaviors, actions, or physical postures of one's social partners, often enhancing social bonding.

Social Facilitation

The tendency for people to perform tasks better or more efficiently when in the presence of others.

Social Loafing

Social loafing is a phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work individually.

Fundamental Attribution Error

A bias towards attributing others' actions more to their personal qualities than to the context they are in.