Assume That You Observe the Long-Run Average Cost Curve of ACME

question 82

Multiple Choice

Assume that you observe the long-run average cost curve of ACME Bookstores, a national chain.Starting from the point on the curve where output is zero and moving to the right, which of the following lists the behavior of long-run average costs in the correct sequence (that is, which will be observed first, second, etc.) ?

• A)minimum efficient scale; economies of scale; constant returns to scale; diseconomies of scale
• B)economies of scale; constant returns to scale; diseconomies of scale; minimum efficient scale
• C)constant returns to scale; economies of scale; minimum efficient scale; diseconomies of scale
• D)economies of scale; minimum efficient scale; constant returns to scale; diseconomies of scale

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Definitions:

Tenure

The status of having a permanent position, especially in an educational setting, which provides a degree of job security.

Adjunct

An accessory, addition, or helper that is not essential but can be used in conjunction with the main entity.

Tenure-Track

An academic employment path that leads to tenure, which is a permanent position, typically requiring a probationary period of several years.

Probability

The measure quantifying the likelihood or chance that a particular event will occur, often expressed as a number between 0 and 1.