Which of the Following Is FALSE

question 94

Multiple Choice

Which of the following is FALSE?

• A) Long-run average variable costs equal long-run average total costs.
• B) Fixed costs increase in the long run.
• C) As a firm produces more output, eventually it experiences diseconomies of scale.
• D) In the long run, both the amount of capital and labor used by the firm can be changed.
• E) In the long run, the firm has no fixed inputs.

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Definitions:

Authority

The ability or prerogative to issue commands, decide on matters, and compel adherence.

Decisions

The choices made by individuals or organizations among two or more alternatives.

Return On Investment

A financial metric used to evaluate the efficiency of an investment or compare the efficiency of several investments, calculating the return relative to the investment's cost.

Income From Operations

Revenue generated from a company's regular business activities, excluding revenue from non-operating sources.