Long-Run Average Cost of the Perfectly Competitive Firm Includes the

question 63

Multiple Choice

Long-run average cost of the perfectly competitive firm includes the

• A)cost of raw materials per unit of output.
• B)opportunity cost of labor per unit of output.
• C)opportunity cost of capital per unit of output.
• D)All of the above are correct.

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Definitions:

Carrying Value

The net amount at which an asset or liability is valued on the balance sheet, factoring in depreciation, amortization, or impairment costs.

Paid-in Capital

Capital received by a company in exchange for shares of stock, exceeding the par or stated value of the shares.

Common Stock

Equity ownership in a corporation, usually with voting rights and dividends.

Face Value

The nominal value of a security stated by the issuer, also known as the “par value.”