A Firm's Long-Run Average Cost Curve

Multiple Choice

A firm's long-run average cost curve

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