For Any Given Output Level,a Firm's Long-Run Costs

question 5

Multiple Choice

For any given output level,a firm's long-run costs

• A)are always greater than or equal to its short-run costs.
• B)are usually greater than or equal to its short-run costs except in the case of diminishing returns to scale.
• C)are always less than or equal to its short-run costs.
• D)are usually less than or equal to its short-run costs except in the case of diminishing returns to scale.

---

Definitions:

Accrued Interest

Accrued Interest is the interest that has been incurred but not yet paid or received as of a specific date.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profits or losses.

Voting Stock

Shares of a company that grant the shareholder the right to vote on corporate matters and elect the board of directors.

Net Loss

Net loss occurs when a company's expenses exceed its revenues during a specific accounting period, resulting in a negative profit.