The long-run average cost curve
a. is a composite of short-run AC curves.
b. shows the lowest possible short-run AC corresponding to each output level.
c. depends on the firm's planning horizon.
d. All of the above are correct.
d
You might also like to view...
Suppose that milk producers expect that the price of milk is going to drop next week. This would cause
A) a decrease in the supply of milk today. B) an increase in the supply of milk today. C) an increase in the demand for milk today. D) the selling price of milk to rise today.
Refer to the figure. An increase in the number of highly skilled and educated potential immigrants would:
A. increase MB and increase the optimal quantity of immigrants.
B. reduce MB and reduce the optimal quantity of immigrants.
C. increase MC and increase the optimal quantity of immigrants.
D. reduce MC and reduce the optimal quantity of immigrants.