Figure 7-13 -AC Is Lower in the Long Run Than in the Than

question 144

Multiple Choice

Figure 7-13
-AC is lower in the long run than in the short run because

• A)prices often fall, allowing savings on purchases.
• B)inputs can be combined more efficiently in the long run.
• C)over time the prices of all inputs tend to decrease.
• D)AFC falls with output over all ranges of output.

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Definitions:

BCG Matrix

A strategic analysis tool that classifies business units or products into four categories (Stars, Cash Cows, Question Marks, Dogs) based on their market growth and market share.

GE/McKinsey

A strategic business tool developed by McKinsey & Company for General Electric to evaluate business portfolio and make investment decisions.

Resource Allocations

The process of assigning and managing assets in a manner that supports an organization's strategic goals.

Product Innovation

The process of bringing new, improved products or services to market or introducing unique features to existing products.