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A Firm's Long-Run Average Cost Curve

Question 333
Multiple Choice

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

Related questions
Q 334
The long-run average cost curve is the A) change in total product divided by the change in capital when the quantity of labor is constant. B) change in output resulting from a one-unit increase in the quantity of capital. C) relationship between the lowest attainable average total cost and output when both the plant size and labor are varied. D) relationship between the lowest attainable average total cost and output when both the plant size and labor are fixed.
Q 335
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 variable. B) is U-shaped. 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
Q 336
Which of the following is correct? A) A firm's short-run average cost curve is derived from a series of long-run average cost curves. B) A firm's long-run average cost curve is derived from a series of short-run average cost curves. C) A firm's long-run total cost is the difference between its long-run fixed cost and long-run variable cost. D) Both answers A and C are correct.
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