A Long-Run Total Cost Curve

question 42

Multiple Choice

A long-run total cost curve:

• A)must be equal to zero when the level of output is zero.
• B)may be greater than or equal to zero when the level of output is zero.
• C)must be decreasing when the level of output is zero.
• D)will be equal to fixed cost, which is greater than zero, when the level of output is zero.

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Definitions:

External Validity

The extent to which the results of a study can be generalized to other situations, populations, or settings.

Alternate Form Reliability

A measure of consistency where different versions of a test produce similar results, indicating the test’s reliability over time.

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure taken at the same time.

Construct Validity

The extent to which a test or measurement tool accurately measures the theoretical construct it is intended to measure.