In the Short Run

question 277

Multiple Choice

In the short run,

• A)TVC will increase for a time at a diminishing rate, but then beyond some point will increase at an increasing rate.
• B)TVC will increase for a time at an increasing rate, but then beyond some point will increase at a diminishing rate.
• C)TVC will increase by the same absolute amount for each additional unit of output produced.
• D)one cannot generalize concerning the behavior of TVC as output increases.

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Definitions:

Short Run

A period in economics during which the quantity and quality of one or more production factors remain unchanged.

Market Price

The ongoing price for buying or selling a service or asset.

Profit-Maximizing

A strategy or decision-making process aimed at achieving the highest possible profit from business operations.

Market Price

The existing rate at which merchandise or services are exchanged in a commercial environment.