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:

Night

The period from sunset to sunrise, characterized by darkness.

Bid

An abbreviation for "bis in die," which is Latin for twice a day; often used in medical prescriptions.

Pc

Personal Computer, a general-purpose electronic device designed to be used by an individual, typically for conducting tasks that require computing capability.

Sig

An abbreviation for "signatura" used in medical prescriptions, indicating the directions for the patient's use of the medication.