The Long-Run Average Total Cost Curve Is

question 135

Multiple Choice

The long-run average total cost curve is:

• A)steeper than the short-run average total cost curve as the firm incurs more fixed costs in the long run
• B)never steeper than short-run average total cost curves, as the firm can always choose the same input combinations as the short-run
• C)steeper or flatter than the short-run average cost curve, but it depends on the long-run marginal cost curve
• D)we cannot say without more detailed information on the firm's costs

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Definitions:

Phonological Loop

A component of working memory responsible for the temporary storage and manipulation of verbal and auditory information.

Working Memory

A form of short-term memory that involves the temporary holding, processing, and manipulation of information for cognitive tasks.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period.

Context-Dependent Memory

The principle that recall of information is easier when in the same context or environment where the memory was originally formed.