Long-Run Costs of Production Are Generally Lower Than the Short

question 101

Multiple Choice

Long-run costs of production are generally lower than the short run costs because:

• A)all inputs are fixed in the long run.
• B)firms cannot change their scale of production in the long run.
• C)there is greater flexibility in input usage in the long run.
• D)there is no scope for learning by doing in the long run.

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Definitions:

Diethylstilbestrol

Diethylstilbestrol (DES) is a synthetic form of estrogen that was once prescribed to prevent miscarriages, but was later found to cause cancer and other serious reproductive problems.

Teratogens

Agents or factors that cause malformation of an embryo or fetus, including certain drugs, infections, and chemicals.

Blastocyst

A structure formed in the early development of mammals, consisting of a cellular shell that encloses a cavity and a cluster of cells from which the embryo develops.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus.