The Minimum Possible Short-Run Average Costs Are Equal to Long-Run

question 381

Multiple Choice

The minimum possible short-run average costs are equal to long-run average costs when

• A) the plant is producing at its short-run minimum point.
• B) short-run and long-run costs are declining.
• C) the long-run curve is at a minimum point.
• D) production is at any point on the LAC curve.

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Definitions:

Learning Curve

The graphical representation of the rate at which someone learns a new skill, indicating improvements in efficiency and performance over time.

Improvement Rate

The pace or degree of enhancement in processes, performance, or productivity over a given period.

Indirect Labour

Workers who support the manufacturing process or service delivery but do not directly contribute to the production of goods or execution of services.

Learning Curves

A graphical representation of how an increase in learning comes from greater experience, leading to reduced costs and increased productivity over time.