Which of the following statements concerning long- run and short- run cost curves is correct?
A)Both the long- run and short- run average cost curves show the lowest cost of producing any output when all factors are variable.
B)The minimum point of the long- run average cost curve will correspond to the minimum point on a single short- run average cost curve.
C)The short- run average cost curve is tangent to the long- run average cost curve for all levels of output of the fixed factor.
D)The long- run average cost curve envelops a whole family of short- run marginal cost curves.
E)A short- run average cost curve can fall below the long- run average cost curve.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements concerning long- run and short- run cost curves is correct?
A)Both the long- run and short- run average cost curves show the lowest cost of producing any output when all factors are variable.
B)The minimum point of the long- run average cost curve will correspond to the minimum point on a single short- run average cost curve.
C)The short- run average cost curve is tangent to the long- run average cost curve for all levels of output of the fixed factor.
D)The long- run average cost curve envelops a whole family of short- run marginal cost curves.
E)A short- run average cost curve can fall below the long- run average cost curve.

Which of the Following Statements Concerning Long- Run and Short-