The long-run average cost curve shows
A) the average cost of producing where diminishing returns are not present.
B) the plant size or scale that the firm should build.
C) the lowest average cost of producing every level of output in the long run.
D) where the most profitable level of output occurs.
Question 2
A firm that can effectively price discriminate will charge a higher price to
A) buyers who belong to the largest market segment.
B) buyers who are members of the smallest market segment.
C) customers who have the more elastic demand for the product.
D) customers who have the more inelastic demand for the product.
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