Two graphs that represent alternative ways of portraying costs in the long run, given resources and technology, are
A) the expansion path and the total fixed cost curve
B) marginal cost and the long-run average cost curve
C) the expansion path and the long-run average cost curve
D) average variable cost and marginal cost
E) the expansion path and marginal product

Question

Quizplus · Accepted Answer

The expansion path shows the combinations of inputs that a firm will use to produce a range of output levels given a set of input prices. The long-run average cost curve shows the lowest average cost at which a firm is able to produce each output level in the long run. Both graphs provide complementary information about costs in the long run, given resources and technology.

Two Graphs That Represent Alternative Ways of Portraying Costs in the Long