Which of the Following Is True in the Long Run

question 94

Multiple Choice

Which of the following is true in the long run?

• A)The average fixed cost curve is U-shaped.
• B)Average fixed cost exceeds average variable cost.
• C)All costs are variable.
• D)All costs are fixed
• E)The average total cost curve intersects the marginal cost curve at its minimum point.

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Definitions:

Demand

The quantity of a particular good or service that consumers are willing and able to purchase at a given price level.

Budget Line

A graphical representation of all possible combinations of two goods which can be purchased with a given budget and prices.

Two-Product Case

A scenario in economic analysis focusing on the effects of changes in production levels, costs, and demand for two products simultaneously.

Change in Income

A variation in an individual's or household's earnings over a specific time frame.