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:

Lobotomy

A neurosurgical procedure, historically used to treat mental disorders by severing connections in the brain's prefrontal cortex.

Benzodiazepines

A class of psychoactive drugs used to treat conditions such as anxiety, insomnia, and seizures by enhancing the effect of the neurotransmitter GABA.

Tranquilizer

Drugs used to reduce tension or anxiety; they can vary in strength and effects, from mild sedatives to powerful antipsychotic medications.

Fluoxetine

An antidepressant medication in the selective serotonin reuptake inhibitor (SSRI) class, used to treat depression and other mental health conditions.