Economics Multiple Choice Question – 27 October 2018

The long-run average cost curve is the …….?

Select ONE answer:

1. Change in total product divided by the change in capital when the quantity of labor is constant.
2. Relationship between the lowest attainable average total cost and output when both the 
plant size and labor are fixed.
3. Change in output resulting from a one-unit increase in the quantity of capital.
4. Relationship between the lowest attainable average total cost and output when both the 
plant size and labour are varied.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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