Long-Run Total Cost

question 71

Multiple Choice

Long-run total cost

• A)represents the lowest possible total cost of producing a given level of output.
• B)is always equal to or greater than short-run total cost.
• C)is greater than short-run total cost when short-run total cost is at its minimum point.
• D)both b and c
• E)all of the above

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Definitions:

Agency Relationship

A legal relationship in which one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.

Gratuitous Agent

An individual who acts on behalf of another without receiving any compensation or benefit for their services.

Making a Contract

The process of creating a legally binding agreement between parties, involving offer, acceptance, and consideration.

Family Business

A commercial organization in which decision-making is influenced by multiple generations of a family related by blood or marriage.