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

question 4

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) \(T C = F C + V C\) , where FC = 0
• B) TC=FC + VC, where FC > 0
• C) \(T C = w L + r K\) , 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:

Statue Of Limitations

Legal time limits within which actions must be filed in court; beyond this period, claims are no longer enforceable. Note: The correct term is "Statute of Limitations."

UCC

The Uniform Commercial Code is an extensive collection of legislation that regulates business dealings across the United States.

Express Warranty

An explicit guarantee made by a seller about the condition and quality of a product, forming part of the contract between buyer and seller.

Implied Warranty

A legal theory in commerce that holds sellers responsible for ensuring the products sold are suitable for their intended use, even if not explicitly stated.