Which of the Following Statements Is (Are) TRUE

question 76

Multiple Choice

Which of the following statements is (are) TRUE?
I. The firm's total cost is the sum of its fixed and variable costs.
II. Over the long term, the costs of the firm's inputs tend to become fixed.
III. In the long run, the firm can adjust the use of all of its inputs.

• A) II
• B) I
• C) I and III
• D) I, II, and III

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Definitions:

Supply Curves

Visual representations indicating how the quantity supplied of a good changes in response to changes in its price, usually upward sloping.

Market Demand

The cumulative demand for a good or service from all buyers in the market, determined by their willingness and ability to purchase at various price points.

Marginal Revenue

The increased earnings obtained by selling an extra unit of a good or service.

Total Revenue

The total income generated from the sale of goods or services.