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:

Highly Fractured Granite

Granite rock that has undergone extensive cracking and breaking, often increasing its permeability and affecting its structural integrity.

Insoluble Material

Substances that cannot dissolve in a solvent, such as water, remaining solid and separated from the liquid mixture.

Drinking Water Standards

Regulatory benchmarks set to ensure the safety and quality of water for human consumption.

Concentration

The amount of a given substance in a specified volume or mass of a solution or mixture.