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:

Cohabitating Couple

A couple living together in a long-term relationship without being married.

Married Couple

Two individuals legally united in marriage, sharing emotional, financial, and social bonds and responsibilities.

First Year

The initial period of twelve months or the freshman level of an educational or experiential setting.

Marriage

A union between persons that is recognized by law and society, creating certain legal and social responsibilities and rights among them.