Multiple Choice
The long run is a period
A) that affects larger rather than smaller firms.
B) long enough to allow firms to change plant size and capacity.
C) long enough to allow firms to make economic decisions.
D) of three years or longer.
E) long enough for firms to begin earning profits.
Correct Answer:
Verified
Correct Answer:
Verified
Q95: Increasing marginal product of labor results in<br>A)increasing
Q96: A capital expansion causes average total costs
Q97: Exhibit 8-9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 8-9
Q98: Increasing returns occur when<br>A)marginal cost is increasing.<br>B)marginal
Q99: A production function is the relationship between<br>A)total
Q101: Draw typical average total cost, average variable
Q102: Exhibit 8-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 8-5
Q103: Long-run average cost and short-run average cost
Q104: Exhibit 8-11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 8-11
Q105: Average total cost is equal to marginal