Below is short-run cost data for four different plant sizes.Plant 2 has exactly twice as many inputs as does Plant 1.Plant 3 has exactly three times as many inputs as does Plant 1 and Plant 4 has exactly four times as many inputs as does Plant 1.

-Refer to the information above to answer this question.Which of the following statements about the shape of the LRAC curve is correct?
A)It is U shaped.
B)It has an inverse U shape.
C)It declines until an output of 40 is reached and is horizontal there after.
D)It declines continuously.
E)It is horizontal.

Question

Below is short-run cost data for four different plant sizes.Plant 2 has exactly twice as many inputs as does Plant 1.Plant 3 has exactly three times as many inputs as does Plant 1 and Plant 4 has exactly four times as many inputs as does Plant 1.
 
-Refer to the information above to answer this question.Which of the following statements about the shape of the LRAC curve is correct?
A)It is U shaped. 
B)It has an inverse U shape. 
C)It declines until an output of 40 is reached and is horizontal there after. 
D)It declines continuously. 
E)It is horizontal.

Quizplus · Accepted Answer

The Answer of Below is short-run cost data for four different plant sizes.Plant 2 has exactly twice as many inputs as does Plant 1.Plant 3 has exactly three times as many inputs as does Plant 1 and Plant 4 has exactly four times as many inputs as does Plant 1.
 
-Refer to the information above to answer this question.Which of the following statements about the shape of the LRAC curve is correct?
A)It is U shaped. 
B)It has an inverse U shape. 
C)It declines until an output of 40 is reached and is horizontal there after. 
D)It declines continuously. 
E)It is horizontal.

Below Is Short-Run Cost Data for Four Different Plant Sizes