In Comparing Long-Run and Short-Run Costs,which of the Following Statements

question 91

Multiple Choice

In comparing long-run and short-run costs,which of the following statements is true at each level of output?

• A)long-run total cost is always less than short-run total costs
• B)long-run total cost cannot exceed short-run total cost
• C)long-run and short-run total costs are equal when fixed costs are large
• D)firms usually make decisions about production levels based on long-run costs rather than short-run costs
• E)short-run total cost cannot exceed long-run total cost

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Correct Choice

The act of making a decision or selection that is deemed most appropriate or beneficial under given circumstances.

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Pertaining to the analysis or assessment of something by comparing it with other things.

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