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Basic Question 16 of 29
The short-run average total cost curve is generally assumed to be ______.
B. upward-sloping
C. downward-sloping
A. U-shaped
B. upward-sloping
C. downward-sloping
User Contributed Comments 2
| User | Comment |
|---|---|
| boddunah | what about LRAC curve? in the long run ,all inputs are variable.technology,plant size so LRAC should be downward sloping.right? |
| boddunah | technology and plant size use capital so fixed costs should go up.at low production level, high LRAC and at high production level , low LRAC .anyone wanna add more? |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.