In the Long Run,total Variable Cost

question 58

Multiple Choice

In the long run,total variable cost:

• A)is equal to total fixed cost.
• B)is equal to total cost.
• C)is equal to average fixed cost.
• D)is more than total fixed cost.
• E)is less than total cost.

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Definitions:

Long Run

A period in economic analysis where all factors of production are variable, allowing for complete industry adjustment.

Industry Supply

The total output of goods or services that firms in a specific industry are willing and able to sell at various prices, over a certain period of time.

Purely Competitive Industry

A market structure where many firms offer products or services that are similar, allowing for free entry and exit, and ensuring no single firm can influence market prices.