In the Long Run

question 241

Multiple Choice

In the long run,

• A) all inputs can be varied.
• B) all inputs are fixed.
• C) some inputs are variable and other inputs are fixed.
• D) output is fixed.
• E) total variable cost cannot be changed.

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Definitions:

Implied Warranty

An unwritten guarantee that the product sold meets certain criteria for usability and satisfaction.

Merchantability

A warranty, often implied by law, that goods sold are fit for the general purpose for which they are sold.

Fitness for a Particular Purpose

A legal warranty implying that a sold good is suitable for the specific use intended by the buyer, as made known to the seller at the time of purchase.

Comparative Fault

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based lawsuit, based on the degree to which the plaintiff's own negligence contributed to the harm.