The Long-Run Average Total Cost Curve Is Always

question 54

Multiple Choice

The long-run average total cost curve is always

• A)flatter than the short-run average total cost curve, but not necessarily horizontal.
• B)horizontal.
• C)falling as output increases.
• D)rising as output increases.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and direct labor.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Gourmet Cupcake

A high-quality, often elaborately decorated cupcake that is made with premium ingredients and designed to cater to sophisticated palates.

Weekly Wages

Weekly wages refer to the total amount of money earned by an employee within a week for their labor or services.