General 5 Flashcards
1
Q
under the condition of the perfect competition, in long run the company most likely earn
A
Normal profits
2
Q
EOS, Economics of Scale
A
It is operating at the point of the LRAC curve where the slope is negative
3
Q
Diseconomies of scale most likely result from
A
overlap of business function
4
Q
LRAC curve
A
The economies of scale curve is a long-run average cost, or LRAC, curve; it allows all factors of production to change
5
Q
Short-run average cost curves assume the
A
existence of fixed costs and only variable costs are allowed to change.
6
Q
The long-run average cost (LRAC) curve shows the firm’s
A
the lowest cost per unit at each level of output, assuming that all factors of production are variable
7
Q
Long-run is when
A
All fixed inputs are variable
