Solved

If a Manufacturer Has a U-Shaped Long-Run Average Total Cost

Question 119

Multiple Choice

If a manufacturer has a U-shaped long-run average total cost curve, then


A) it cannot correctly calculate the position of its fixed cost curve
B) there is an output level such that producing one more unit increases average total cost
C) there must be a large range of production over which the firm experiences constant returns to scale
D) no two quantities of output can have the same average total cost
E) there does not exist an output level such that producing one more unit decreases average total cost

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents