1. The lowest level of output where LRAC is minimised is known as what?
- Moderate efficiency scale
- Minimum efficiency scale
- Maximum efficiency scale
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Other questions in this quiz
2. On typical short run cost curves, which cost curve runs through the lowest point of both average variable cost curve and average cost curve?
- Average total cost curve
- Marginal cost curve
- Average fixed cost curve
3. What is long run?
- Time period when the lowest level of output where long-run average cost (LRAC) is minimised.
- Time period when all factor inputs can be changed
- Time period when a firm is unable to change factors of production except for one, usually labour.
4. Nature of costs in most types of transport is that _____ costs are a relatively high proportion of total costs. Particularly true of air and rail transport.
5. In air transport, a substantial fixed cost item is the annual sum that has to be paid to?
- Lease aircraft
- Lease airports
- Lease passengers