Which of the Following Is Not an Accurate Specification of a Firm's

question 73

Multiple Choice

Which of the following is not an accurate specification of a firm's long-run total cost curve? FC stands for fixed cost, VC stands for variable cost, and AC stands for average cost, below.

• A) \(T C = F C + V C\), where \(\mathrm { FC } = 0\)
• B) \(T C = F C + V C\), where \(\mathrm { FC } > 0\)
• C) \(T C = w L + r K\), where \(L\) and \(K\) are chosen to minimize cost, and \(w\) and \(r\) are input prices.
• D) \(T C = A C x Q\)

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Definitions:

Patterned Affiliations

Established, repeatable associations or relationships between individuals or groups that follow a recognizable sequence or arrangement.

Organizational Structure

Organizational Structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims, outlining the hierarchy and the flow of information within an organization.

Level of Commitment

Describes the degree to which an individual, group, or organization is dedicated to a cause, idea, or goal.

Socially Sanctioned

Behaviors or practices that are acceptable and approved within a society or group.