If a Firm Is Producing the Level of Output at Which

question 62

Multiple Choice

If a firm is producing the level of output at which short-run average cost equals long-run average cost,then

• A)the firm has chosen the cost-minimizing combination of inputs to produce this level of output.
• B)with a fixed amount of capital,short-run average cost is greater than long-run average cost at any other level of output.
• C)the firm has chosen the profit-maximizing level of output.
• D)both a and b
• E)all of the above

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Definitions:

Prototype

An early sample, model, or release of a product built to test a concept or process or to act as a thing to be replicated or learned from.

High-Technology Inventor

An individual or group involved in creating innovative products or systems that rely on advanced scientific and engineering knowledge.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

Employee Stock Ownership Plans (ESOPs)

An employee benefit plan giving workers ownership interest in the company, often aimed at improving company performance and employee satisfaction.