Question

Which of the following is False?

(a) LAC Curve is “U-Shaped”, reflecting Economies of Scale (or Increasing Returns to Scale)

when negatively sloped and diseconomies of scale (or decreasing returns to scale) when negatively

sloped and diseconomies of scale (or decreasing returns to scale) when positively sloped.

(b) LAC Curve is called as “Planning Curve” because a firm plans to produce any output in the

long run by choosing a plant on the long run average cost curve corresponding to the given output.

LAC Curve is also called as Enveloping Curve because it envelopes the set of U-Shaped Short-

Run Average Cost Curves corresponding to different plant sizes.

(c) Both LAC and LMC curves are ‘U Shaped’.

(d) None of these​

Answer 1

Explanation:

D. none of these...............