A Firm's Long-Run Average Cost Curve Is

question 310

Multiple Choice

A firm's long-run average cost curve is

• A) the locus of points representing the minimum unit cost of producing any given rate of output when all inputs may be adjusted.
• B) the locus of points made up of the minimum point on each short-run average total cost curve when only one input may be adjusted.
• C) the envelope of the firm's variable cost curves.
• D) identical to the lowest short-run average cost curve the firm has.

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