Which of the following statements most accurately makes the distinction between the long run and the
Very-long run with respect to the long-run average cost LRAC) curve?
A) In the long run, the LRAC curve is shifting down, whereas in the very -long run the firm is moving along the existing LRAC curve.
B) In the long run, the firm is moving along the existing LRAC curve, whereas in the very -long run, the LRAC curve is shifting down.
C) In the long run, the LRAC curve is shifting up, whereas in the very-long run the firm is moving along the existing LRAC curve.
D) In the long run, the firm is moving along the existing LRAC curve, whereas in the very -long run, the LRAC curve is shifting up.
E) There is no distinction between the long run and the very-long run with respect to the LRAC curve.
Correct Answer:
Verified
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