Which of the Following Is False About the Long Run

question 105

Multiple Choice

Which of the following is false about the long run?

• A) The long-run equilibrium output for a firm in perfect competition occurs at the lowest point on the average total cost curve.
• B) The shape of the long-run supply curve depends on the extent to which input costs change when there is entry or exit of firms in the industry.
• C) In a constant-cost industry, the prices of inputs do not change as output is expanded.
• D) In an increasing-cost industry, the cost curves of the individual firms rise as the total output of the industry decreases.

---

Definitions:

Recursive Solution

A method of solving a problem where the solution involves calling a function itself with modified parameters.

Iterative Method

A computational technique that uses a sequence of steps to converge towards a solution.

Factorial

A mathematical operation that multiplies a number by every number below it down to 1 (e.g., 5 factorial is 5 * 4 * 3 * 2 * 1 = 120).

Activation Record

A data structure containing information about the execution state of a subroutine, used for managing function calls and returns in software execution.