Long-run average cost is defined as:
A) the minimum average cost of producing any level of output when all inputs are variable.
B) the minimum average cost of producing any level of output when the amount of capital is varied and all other inputs are held constant.
C) the average of the short-run costs associated with each amount of capital employed by the firm.
D) the minimum average cost of producing any level of output when all inputs are fixed.
A
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A budget deficit is best defined as the
a. shortage of spending power created by a government spending cut. b. shortage of spending power created by a tax increase. c. accumulation of past debt that has not been covered by taxes. d. amount by which a government's expenditures exceed receipts during a specific time period.
Table 28.1Reduction in Emissions (in tons)MC to Reduce Emissions by Steel PlantMC to Reduce Emissions by Paper Plant1$400$20025002803600320Refer to Table 28.1. Suppose the government allows these two firms to trade pollution permits. The total cost to reduce emissions by a total of two tons could be as low as
A. $600. B. $900. C. $0. D. $480.