Question

Which of the following statements about a firm's average cost curves is false?

A Its SAC curve will stay put if the price of an input that is fixed in the short run increases.
B Its SAC curve will shift upwards if the price of an input that is variable in the short run increases.
C Its SAC curve will generally lie above its LAC curve.
D Its LAC curve will shift upwards if new firms enter its industry and there are external diseconomies of scale.
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