Multiple Choice
Which of the following statements with respect to the figure below is INCORRECT?
A) All the possible short-run average cost curves that correspond to the different plant sizes are shown as -
.
B) If the anticipated permanent rate of output per unit time period is in panel (a) , the optimal plant would correspond to
.
C) If the permanent rate of output increases to in panel (a) , it will be more profitable to have a plant size corresponding to
.
D) The long-run average cost curve LAC in panel (b) is sometimes called the planning curve representing the locus (path) of points.
Correct Answer:

Verified
Correct Answer:
Verified
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