The shape of a firm's ________ -run average cost curve depends on how costs vary with ________.
A) short; scale of operations
B) short; no fixed factor of production
C) long; scale of operations
D) long; a fixed factor of production

Question

Quizplus · Accepted Answer

The long-run average cost curve reflects how costs vary with the scale of operations, as all factors of production can be varied in the long run, unlike in the short run where at least one factor is fixed.

The Shape of a Firm's ________ -Run Average Cost Curve