Which of the Following Statements Concerning Long-Run and Short-Run Cost

Multiple Choice

Which of the following statements concerning long-run and short-run cost curves is correct?

A) A short-run average cost curve can fall below the long-run average cost curve.
B) The short-run average cost curve is tangent to the long-run average cost curve for all levels of output of the fixed factor.
C) The long-run average cost curve envelops a whole family of short-run marginal cost curves.
D) The minimum point of the long-run average cost curve will correspond to the minimum point on a single short-run average cost curve.
E) Both the long-run and short-run average cost curves show the lowest cost of producing any output when all factors are variable.