A Firm's Long- Run Average Cost Curve

Multiple Choice

A firm's long- run average cost curve

A) is horizontal in most situations.
B) is the boundary between attainable and unattainable cost levels,with known production technologies and given factor prices.
C) shows the relationship between marginal cost and output given that the economically most efficient method of production is employed.
D) is an envelope of short- run average variable cost curves.
E) shows the minimum cost of producing each possible level of output with a fixed factor.