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The point on which the average cost is minimum in a firm short-run average cost curve will also be the minimum cost point on the firm's long run average cost curve. This is true

The point on which the average cost is minimum in a firm short-run average cost curve will also be the minimum cost point on the firm's long run average cost curve. This is true Correct Answer Only at that level of output when LAC is at its minimum

Related Questions

Indicate the correct answer from the following types of the long run average cost curves on which the minimum average cost of production in long run can be determined.
1. Long run average cost curve under normal production function
2. Long run average cost curve under linearly homogeneous production function
3. Planning curve
4. Envelope curve
Marginal cost is equal to marginal revenue, average cost is equal to average revenue, average revenue is equal to marginal revenue and average cost is equal to marginal cost. This is the condition of
1. long period equilibrium for a firm under monopoly
2. short period equilibrium for a firm under oligopoly
3. long period equilibrium
4. long period equilibrium for a firm under perfect competitions
Select the correct answer
The marginal cost is equal is to marginal revenue, the average cost is equal to average revenue, average revenue is equal to marginal revenue, and the average cost is equal to marginal cost. This is the condition of
1. Long-period equilibrium for a firm under monopoly.
2. Short-period equilibrium for a firm under oligopoly.
3. Long-period equilibrium
4. Long-period equilibrium for a firm under perfect competition.
Assertion (A) All firms under perfect competition in long run earn only normal profit.
Reason (R) All firms under perfect competition in long run operate at the minimum average cost level.
From an alloy, two specimens are machined and tested separately under tension and compression. The engineering stress-strain curves as well as the true stress-true strain curves for tension and compression are plotted in the same diagram. Identify the correct statements:
P. The engineering stress-strain curves in tension and compression are identical.
Q. The true stress-true strain curve in compression is lower than the true stresstrue strain curve in tension due to Bauschinger effect.
R. The true stress-true strain curve in tension is above the corresponding engineering stress-strain, curve.
S. The true stress-true strain curve in tension and compression are identical.
How far is point 'R' from Point 'T'? Statement (I): Point 'R' is 5 metres to the north of point 'M'. Point 'U' is 4 metres to the east of point 'R'. Point 'T' is to the west of point 'R' such that points 'U' 'R' and 'T' form a straight line of  metres. Statement (II): Point 'Z' is metres to the south of point 'T'. Point 'U' is  metres to the east of point 'T'. Point 'M' is  metres to the east of point 'Z'. Point 'R' is  metres to the north of point 'M'. Point 'R' lies on the line formed by joining points 'T' and 'U'.
Short run marginal cost curve cuts the short run average cost curve from _______ at the minimum point of short run average cost.
In making decisions about important questions, it is desirable to be able to distinguish between strong and weak arguments. Strong arguments are those, which are both important and directly related to the question. Weak arguments are those, which are of minor importance and also may not be directly related to the question or may be related to a trivial aspect of the question. The questions below are followed by two arguments each numbered I and II. You have to decide which of the two arguments is the strong argument and which is the weak argument. Statement: In a competitive market, if one firm reduces its prices then should other firms also reduce their prices? Arguments: Yes. If the other firms do not reduce their prices, they would lose customers. No. The other firms will start facing losses by reducing their prices.
Point A is 3m in the north of point B. Point D is 2m in the east of point E. Point F is 9m in the west of point G. Point C is 4m in the west of point B. Point C is 3m in the south of point D. Point F is 5m in the south of point E. Point H is 5m in the north of point G. What is the shortest distance between point H and point A?
Given below are two statements. One is labelled as Assertion (A) and the other is labelled as Reason (R).  Assertion (A): In the case of short-run cost behaviour, MC curve intersects AC curve at its minimum  Reason (R): While AC continues to decrease, MC begins to rise. Also, when AC is at its minimum, it is neither increasing nor decreasing. It is constant when AC is constant, it is equal to MC at the point of intersection  Choose the correct option from those below  1. Both A) and R) true and R) is the correct explanation of A) 2. Both A) and R) true but R) is NOT the correct explanation of A) 3. A) is true but R) is false 4. A) is false but R) is true