Below Is Short-Run Cost Data for Four Different Plant Sizes

Multiple Choice

Below is short-run cost data for four different plant sizes.Plant 2 has exactly twice as many inputs as does Plant 1.Plant 3 has exactly three times as many inputs as does Plant 1 and Plant 4 has exactly four times as many inputs as does Plant 1.

-Refer to the information above to answer this question.Which of the following statements about the shape of the LRAC curve is correct?

A) It is U shaped.
B) It has an inverse U shape.
C) It declines until an output of 40 is reached and is horizontal there after.
D) It declines continuously.
E) It is horizontal.