The long-run average cost curve is the
A) change in total product divided by the change in capital when the quantity of labor is constant.
B) change in output resulting from a one-unit increase in the quantity of capital.
C) relationship between the lowest attainable average total cost and output when both the plant size and labor are varied.
D) relationship between the lowest attainable average total cost and output when both the plant size and labor are fixed.
Question 2
The higher the cost of acquiring skills, the ________ are the high-skilled and low-skilled labor ________ curves.
A) closer together; demand
B) farther apart; demand
C) closer together; supply
D) farther apart; supply
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