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

question 4

Multiple Choice

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

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

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Definitions:

Uniform Electronic Transactions Act

A law adopted by states to give legal recognition to electronic signatures and records in commercial and governmental transactions.

Electronic Transactions

Financial transactions or exchanges of information conducted electronically over the internet or other computer networks.

Written Document

A tangible representation of information or contractual terms that has been penned or printed on paper or similar material, serving as evidence or record.

Agent Negotiation Rule

A principle that stipulates how agents can negotiate on behalf of their principals to create binding agreements.