If the Firm Is Producing in the Long Run, Then

question 163

Multiple Choice

If the firm is producing in the long run, then the firm's average total cost curve

• A) equals the average variable cost curve.
• B) is less than the average variable cost curve.
• C) exceeds the average variable cost curve.
• D) equals zero.

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Definitions:

Planning Board

A governing body or committee responsible for setting policies, goals, and procedures related to urban planning, development, and infrastructure projects.

Private Ownership

The legal rights of individuals or corporations to own property and assets, excluding governmental entities.

Economic Growth

(1) An outward shift in the production possibilities curve that results from an increase in resource supplies or quality or an improvement in technology; (2) an increase of real output (gross domestic product) or real output per capita.

Self-Interest

is the motivation by individual personal gain as the driving force behind economic decisions and actions.