If a firm experiences constant returns to scale throughout:
a. the long-run average-total-cost curve is negatively sloped.
b. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their positively sloped portion.
c. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at their minimum points.
d. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their negatively sloped portion.
e. the long-run average-total-cost curve is positively sloped.
c
You might also like to view...
The World Bank will primarily make
A) short-term loans for investment projects that are relatively safe. B) long-term loans for investment projects that are relatively risky. C) short-term loans for investment projects which might not receive private financial support. D) long-term in nature for investment projects which might not receive private financial support.
Under a k-percent rule, if the economy goes into expansion, the Fed would
A) increase the quantity of money. B) raise the federal funds rate. C) lower tax rates to keep revenue constant. D) lower the federal funds rate. E) None of the above answers is correct.