Which of the Following Statements Is True

question 169

Multiple Choice

Which of the following statements is true?

• A) In the long run, the average cost curve is always downward sloping.
• B) In the long run, the quantities of all inputs are fixed.
• C) In the long run, the firm's fixed costs are greater than its variable costs.
• D) In the long run, all costs are variable costs.
• E) In the long run, the total variable cost equals the total fixed cost.

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Definitions:

Annual Interest Rate

The percentage that is applied to a sum of money, including loans or savings, indicating the amount earned or paid over a year.

Interest Rates

The cost of borrowing money or the return for investing money, usually expressed as a percentage of the principal amount.

Future Dollars

Currency value projected at a future date, often used in the context of inflation or investment growth.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.