The Long-Run Average Total Cost Curve Is Constructed from the

question 81

Multiple Choice

The long-run average total cost curve is constructed from the

• A)Minimum points of the short-run marginal cost curves.
• B)Minimum points of the short-run average variable cost curves.
• C)Lowest average total cost for producing each level of output.
• D)Minimum points of the long-run marginal cost curves.

---

Definitions:

Rent

A regular payment made by tenants to landlords for the use of property or land; in economics, it also refers to earnings in excess of the minimum amount necessary to keep a factor of production in its current use.

Proprietor's Income

Income earned by the owner of a sole proprietorship from the business's net earnings.

Wages and Profits

The income earned by workers and the revenue earned by owners or shareholders from their investment, respectively.

Interest and Profits

The returns on investment from lending money and the surplus revenues from successful business operations, respectively.