In the Long Run

question 228

Multiple Choice

In the long run,

• A)all of the firm's input quantities are variable.
• B)the firm can vary the quantities of some but not all inputs.
• C)managers become less efficient.
• D)the total cost of producing any given level of output is greater than or equal to the short-run total cost of producing that level of output.

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Definitions:

Technological Knowledge

Information and skills acquired through experience or education regarding the use, development, and application of technological tools and systems.

Productivity

The measure of the efficiency of production, typically expressed as the ratio of output to inputs used in the production process.

Real GDP

Real GDP, or Real Gross Domestic Product, measures the value of all final goods and services produced within a country in a given period, adjusted for inflation to reflect changes in price levels.

Market Prices

Prices that are determined by the interaction of supply and demand in a marketplace.