Long Run and Short Run Total Cost Functions Are

question 93

Multiple Choice

Long run and short run total cost functions are:

• A)unrelated to each other.
• B)tangent at one point.
• C)different names for the same thing.
• D)tangent at minimum short run average cost.

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Definitions:

Marginal Costs

The cost added by producing one extra item of a product, essentially the same as marginal cost but rephrased for clarity.

Marginal Benefits

The extra advantage or value received from consuming an additional unit of a product or service, influencing decision-making in economic transactions.

Government Spending

The total amount of money that a government expends on various programs, projects, and services within a particular fiscal period.

Pork Barrel Politics

A form of political maneuvering in which government funds are used for local projects that are intended primarily to benefit constituents of a politician in return for their political support, often viewed critically as wasteful or corrupt expenditure.