The minimum possible short-run average costs are equal to long-run average costs when Group of answer choices the long-run curve is at a minimum point. Production is at any point on the SAC curve. Production is at any point on the LAC curve. the plant is producing at its short-run minimum point. short-run and long-run costs are declining.

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.