According to Porter's Five Competitive Forces Model, similar products produced by different firms within the industry affects a firm's ability to raise prices far more than substitutable products produced outside the industry

Which of the following statements concerning the long-run average cost (LRAC) curve is correct?

A) The LRAC curve represents the least-cost input combination of inputs for producing each level of output. B) The LRAC curve is derived from a series of short-run marginal cost curves. C) The short-run cost curve at the minimum point of the LRAC curve represents the least-cost plant size for all levels of output. D) As output increases, the amount of capital employed by the firm is held constant along the LRAC curve.

As the price of a good declines, a utility-maximizing consumer will respond by purchasing more of that good

a. True b. False Indicate whether the statement is true or false