The Long-Run Average Cost Curve Connects the Lower Part of the Short-Run

question 258

Multiple Choice

The long-run average cost curve connects the lower part of the short-run cost curves because ________.

• A) the prices of inputs are less when acquired for a longer time period
• B) firms have more flexibility to change input combinations in the long run
• C) the specialization of inputs increases productivity only in the long run
• D) firms earn positive profits in the long run

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