Long-Run Average Cost Is Never Greater Than Short-Run Average Cost

question 38

Multiple Choice

Long-run average cost is never greater than short-run average cost because in the long run,

• A) capital costs equal zero.
• B) the firm can move to the lowest possible isocost curve.
• C) wages always increase over time.
• D) wages always decrease over time.

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Definitions:

Deceptive Trade Practices

Activities by businesses that mislead consumers or distort the truth about the products or services being offered.

Wrongful Charges

Wrongful charges refer to unfair or unjust accusations or fees imposed on an individual or entity without proper justification or evidence.

Unjust Gains

Profits or benefits obtained under unethical or illegal circumstances that are deemed unfair or illicit.

Exaggerated Advertising

Marketing practices that overstate the qualities, benefits, or effectiveness of a product or service.