Which of the Following Is FALSE

question 353

Multiple Choice

Which of the following is FALSE?

• A) Long-run average variable costs equal long-run average total costs.
• B) Fixed costs increase in the long run.
• C) As a firm produces more output, eventually it experiences diseconomies of scale.
• D) In the long run, both the amount of capital and labor used by the firm can be changed.

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Definitions:

Purchase Invoice Cost

The total cost reflected on an invoice that a buyer incurs to acquire goods or services, including the purchase price and related expenses.