Question: Explain the relationship between the short-run average total cost and the long-run average cost. (Select all that apply.) A. The short-run average total cost (ATC)

Explain the relationship between the short-run average total cost and the long-run average cost. (Select all that apply.) A. The short-run average total cost (ATC) curve is the minimum average cost given the fixed inputs. B. The long-run average cost (LAC) is the maximum average cost to produce any quantity when all inputs are variable. C. The long-run average cost (LAC) curve cuts the short-run average total cost (ATC) curve at its minimum. ) D. There is a short-run average total cost (ATC) curve tangent to every point on the long-run average cost (LAC) curve

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

18. long-run diseconomies of scale exist when the a. short-run average total cost curve falls. b. long-run marginal cost curve rises. c. long-run average total cost curve falls. d. short-run average...

Long-run diseconomies of scale exist when the a. short-run average total cost curve falls. b. long-run marginal cost curve rises. c. long-run average cost curve falls. d. short-run average cost curve...

True or false? Explain your reasoning. a. The short-run average total cost can never be less than the long-run average total cost. b. The short-run average variable cost can never be less than the...

Please explain these graphs and the curves, what are these ATC and the SMC, its very confusing, thanks E/Q SMC240 ATC 240 ATC120 SMC120 SMC200 ATC 200 Q1 Q2 Q 3 Q FIGURE 11.22 Short-Run Cost Curves...

The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each...

Question 7: Output and Costs (Chapter 11) It was also mentioned in class that in the long-run all the costs are variable, owing to the ability to alter plant sizes in the longrun (in the shortrun the...

the questions will be on file please 8. Long-run cost relationships The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm....

In the long-run all the costs are variable, owing to the ability to alter plant sizes in the long-run (in the short-run the plant size is fixed but it is still possible to increase output in the...

It was also mentioned in class that in the long-run all the costs are variable, owing to the ability to alter plant sizes in the long-run (in the short-run the plant size is fixed but it is still...

Choose the transition signal that best shows the relationship between the sentences Question 7: we 2 points graduate this, we will still meet from time to time. * Whereas Even if Unlike However

IT application controls are classified as (a) input controls, (b) processing controls, and (c) output controls. Required: For each of the three application control categories listed, provide two...

Assume DL release the ASX statement, however the field trials have returned that the grevilleas are in fact too weedy. DL has spent in excess of $ 1 million for the trials which is normal in the...

write the answer in 2-3 steps with clear hand writing or typed answer Describe some ways to manage credit risk at a nonfinancial company

9. Give an example of how the word because can trigger a cognitive reflex in another party.

7. Give an example of how the authority principle can be used to influence others.

8. Give an example of how the scarcity principle can be used to influence others.