Which of the following does NOT represent a possible shape of the long-run average cost curve?
A)downward sloping
B)upward sloping
C)U-shaped
D)vertical

Question

Quizplus · Accepted Answer

A vertical long-run average cost curve would imply that there is no level of production where costs can be minimized, which is not a possible outcome. A downward sloping curve would indicate economies of scale, an upward sloping curve would indicate diseconomies of scale, and a U-shaped curve would indicate first experiencing economies of scale followed by diseconomies of scale.

Which of the Following Does NOT Represent a Possible Shape