Q39
Which of the following is also known as plant curves?
A.
Long-run average cost (LAC) curves
B.
Short-run average cost (SAC) curves
AnswerC.
Average variable cost (AVC) curves
D.
Average total cost (ATC) curves
Answer: Option B
Solution
Answer: Option B
Solution:
Short-run average cost (SAC) curves is also known as plant curves. These SACs are also called plant curves. In the short run, a firm can operate on any SAC, given the size of the plant.