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 responses are correct.

Answer: D

Economics

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Opportunity cost

A) can only be measured as a paid cost. B) is always the value of the next best forgone opportunity. C) does not exist since there are no receipts. D) is always the lowest valued alternative.

Economics

Comparative advantage and relative opportunity costs are the same thing

Indicate whether the statement is true or false

Economics