If the Long-Run Average Cost Curve Is U-Shaped, the Optimal

question 120

Multiple Choice

If the long-run average cost curve is U-shaped, the optimal scale of production from society's viewpoint is

• A)the minimum efficient scale.
• B)where maximum economic profit is earned by producers.
• C)where firm profit is large enough to finance research and development.
• D)one which guarantees economic profit.

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Definitions:

Individual Attributes

The characteristics or qualities that define a person, such as physical features, personality traits, and abilities.

Economic Classes

Categories of people within a society who share similar socio-economic statuses, often determined by income, wealth, occupation, and education.

Ownership of Property

The legal right or interest that an individual or entity has in an asset, including tangible and intangible assets.

Urban Areas

refer to regions characterized by higher population density and vast human features in comparison to areas surrounding them.