Which of the Following Is Not an Accurate Specification of a Firm's

question 37

Multiple Choice

Which of the following is not an accurate specification of a firm's long-run total cost curve? FC stands for fixed cost,VC stands for variable cost,and AC stands for average cost,below.

• A) , where FC = 0
• B) TC=FC + VC, where FC > 0
• C) , where L and K are chosen to minimize cost, and w and r are input prices.
• D) TC = AC x Q

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Definitions:

Unknown Quantities

Variables in mathematical equations or problems that are not yet determined or are to be solved for.

Proportion

A part, share, or number considered in comparative relation to a whole, often expressed as a fraction or percentage.

Unknown Quantities

Variables or values in mathematics and science that are not known and need to be solved for in an equation or experiment.

Proportion

A statement that two ratios or fractions are equal.