A firm's long-run average cost curve
A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed.
B) is the sum of all of its short-run average cost curves.
C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output.
D) all of the above
C
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Money is any commodity or token that
A) is naturally accepted by households to accumulate wealth. B) is backed up and controlled by the government. C) does not change in value over time. D) is generally accepted as a means of payment. E) is backed by gold.
Consider the two economies of Lithasia and Barylia. Economic agents in Lithasia have coordination and incentive problems, while in Barylia social surplus is maximized
Which economic system does each of these economies most likely have? Explain your answer.