In the Long Run

question 51

Multiple Choice

In the long run,

• A)the firm's fixed costs are greater than its fixed costs in the short run.
• B)all of the firm's costs are explicit costs; there are no implicit costs of production.
• C)the firm is more profitable than it is in the short run.
• D)all of the firm's costs are variable costs.

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Definitions:

Monthly Production

The total output or quantity of goods produced by a company in a single month.

Total Cost Data

The aggregate cost information, combining all direct and indirect expenses related to a business operation or project.

Variable Cost Per Unit

The cost that varies directly with the production volume; it rises as more units are produced and falls as fewer units are produced.

Fixed Manufacturing Cost

Costs that do not vary with the level of production, including salaries of managers and rent of the factory.