When Graphed, a Typical Variable Cost Appears As

question 62

Multiple Choice

When graphed, a typical variable cost appears as:

• A) a horizontal line.
• B) a vertical line.
• C) a u-shaped line.
• D) a diagonal line that slopes downward to the right.
• E) a diagonal line that slopes upward to the right.

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Definitions:

Short-Run

The short-run in economics refers to a period during which at least one input, such as plant size, is fixed and cannot be changed.

Long-Run

A period of time in which all factors of production and costs are variable, allowing for full adjustment to changes.

Marginal Revenue

The increase in revenue from the sale of one more unit of a product or service.

Natural Monopoly

A market situation where a single supplier can provide a good or service more efficiently than any potential competitor, often due to high initial setup costs.