Question 26 Which of the following statements is correct? A. The long-run total cost curve is the total of all the shor

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Question 26Which of the following statements is correct?A. The long-run total cost curve is the total of all the short-runtotal cost curves.B. The marginal cost curve intersects average variable cost (AVC)and averagetotal cost (ATC) at the maximum of ATC and AVC.C. The long-run average total cost curve must be the lower envelopeof all of thefirm's short-run average total cost curves.D. In the short run where capital is fixed, to minimize the cost,the necessarycondition is the technical rate of substitution equals to inputprice ratio.
Question 27In a regular two-consumer two-good exchange economy, if we movefroman initial Pareto inefficient endowment to a point on the core,what mustbe true?A. A Pareto-improvement has occurredB. The new allocation can be supported as an equilibrium withtransfersC. The new allocation is socially preferred to the originalendowmentD. All of the other answers are correct