Day: June 14, 2022

Which statement about the long-run average cost curve of a firm is correct?

Select ONE answer:

1. It falls continuously because of economies of scale.
2. It passes through the minimum points of the firm’s short-run average cost curves.
3. It assumes that factor input proportions are held constant as output increases.
4. It indicates the minimum average cost at which each level of output can be produced.

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

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This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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