The Long-Run Average Cost Curve Shows

question 294

Multiple Choice

The long-run average cost curve shows

• A)the lowest average cost of producing every level of output in the long run.
• B)where the most profitable level of output occurs.
• C)the average cost of producing where diminishing returns are not present.
• D)the plant size or scale that the firm should build.

---

Definitions:

Effective

Producing a desired effect, outcome, or ability to successfully bring about a result, particularly in terms of efficiency or potency.

Average

A statistical measure representing the central or typical value in a set of data, calculated typically as the sum of the values divided by the number of values.

Volt-amperes

A unit of electrical power in an AC circuit equivalent to one volt multiplied by one ampere, used to measure apparent power.

VARs

An abbreviation for Volt-Ampere Reactive, a unit of reactive power in an electrical system, representing the non-working power in an AC circuit.