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. the firm has chosen the profit-maximizing level of output.
C. with a fixed amount of capital, short-run average cost is greater than long-run average cost at any other level of output.
D. both a and b
E. all of the above
Answer: D
Economics
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