Which of the Following Is TRUE for a Firm in the Long

question 152

Multiple Choice

Which of the following is TRUE for a firm in the long run?

• A) Variable costs will initially increase and then decrease.
• B) The law of diminishing marginal product holds.
• C) All costs are variable costs.
• D) Variable costs will equal marginal cost at all output levels.

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Definitions:

Patents

Legal rights granted to inventors that prevent others from making, using, or selling their invention without permission for a certain period of time.

Innovation

The introduction of new ideas, goods, services, and practices to the market, which significantly improves or enhances value.

Invention

The creation of a new product, process, or idea that did not exist before, which typically involves innovation and creativity.

Natural Monopoly

A market condition where a single supplier is most efficient in providing goods or services due to high fixed or startup costs.