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Which of the Following Statements with Respect to the Figure SAC1\mathrm { SAC } _ { 1 }

Question 49

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Which of the following statements with respect to the figure below is INCORRECT?  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  \mathrm { SAC } _ { 1 }  -  \mathrm { SAC } _ { 8 }  . B) If the anticipated permanent rate of output per unit time period is  \mathrm { Q } _ { 1 }  in panel (a) ,the optimal plant would correspond to  \mathrm { SAC } _ { 1 }  . C) If the permanent rate of output increases to  \mathrm { Q } _ { 2 }  in panel (a) ,it will be more profitable to have a plant size corresponding to  \mathrm { SAC } _ { 3 }  . D) The long-run average cost curve LAC in panel (b) is sometimes called the planning curve representing the locus (path) of points.


A) All the possible short-run average cost curves that correspond to the different plant sizes are shown as SAC1\mathrm { SAC } _ { 1 } -
SAC8\mathrm { SAC } _ { 8 } .
B) If the anticipated permanent rate of output per unit time period is Q1\mathrm { Q } _ { 1 } in panel (a) ,the optimal plant would correspond to
SAC1\mathrm { SAC } _ { 1 } .
C) If the permanent rate of output increases to Q2\mathrm { Q } _ { 2 } in panel (a) ,it will be more profitable to have a plant size corresponding to
SAC3\mathrm { SAC } _ { 3 } .
D) The long-run average cost curve LAC in panel (b) is sometimes called the planning curve representing the locus (path) of points.

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