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