A Firm's Long Run Cost Is the Cost of Production

question 420

Multiple Choice

A firm's long run cost is the cost of production when the firm

• A) calculates its cost at least one year into the future.
• B) adds together all of its short run costs.
• C) uses the economically efficient quantities for its plant and its labor.
• D) can vary the amount of output it produces.

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Definitions:

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, before conditioning associates it with an unconditioned stimulus.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any prior learning or conditioning.

Food Reward

The pleasure and sense of satisfaction experienced after eating, which can be a powerful motivation for food consumption and choices.

Jump Rope

A physical activity involving jumping over a rope swung so that it passes under the feet and over the head of the jumper, used for exercise or play.