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Which of the Following Is Not an Accurate Specification of a Firm's

Question 73

Multiple Choice

Which of the following is not an accurate specification of a firm's long-run total cost curve? FC stands for fixed cost, VC stands for variable cost, and AC stands for average cost, below.


A) TC=FC+VCT C = F C + V C , where FC=0\mathrm { FC } = 0
B) TC=FC+VCT C = F C + V C , where FC>0\mathrm { FC } > 0
C) TC=wL+rKT C = w L + r K , where LL and KK are chosen to minimize cost, and ww and rr are input prices.
D) TC=ACxQT C = A C x Q

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