In Defining a Firm's Long-Run Average Cost Curve

question 104

Multiple Choice

In defining a firm's long-run average cost curve,

• A)factor prices are held constant and technology is assumed to change.
• B)factor prices are held constant and the quantity of factors of production used is varied.
• C)factor prices are varied and the quantity of factors of production is held constant.
• D)technology,factor prices,and the quantity of factors of production are all varied.
• E)the time period must be longer than one year.

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Definitions:

Tech Support Department

A specialized unit within a company that provides technical assistance and support related to computer systems, software, and hardware to customers or employees.

Cost Per Minute

A metric used to calculate the expense incurred for every minute of operation, often in manufacturing or services.

Customer Cost Analysis

The process of analyzing and evaluating the costs associated with acquiring and retaining customers, often used to inform pricing and marketing strategies.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products or services based on the actual amount of time they consume, using an hourly cost rate.