Which of the Following Is True in the Long Run

question 27

Multiple Choice

Which of the following is true in the long run?

• A) Total cost equals fixed cost.
• B) Total cost is constant.
• C) All costs are variable.
• D) Marginal cost equals zero.
• E) None of the above is true in the long run.

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Definitions:

Marginal Rate Of Transformation

The rate at which one good must be sacrificed to produce an additional unit of another good, based on the given technology and resource constraints.

Marginal Rate Of Transformation

The rate at which one good must be sacrificed to produce an additional unit of another good, reflecting the opportunity cost.

Comparative Advantage

A principle that holds that each party should produce the goods or services for which it has the lowest opportunity cost relative to others.

Trade Restriction

Measures implemented by governments to control the amount of trade across borders, including tariffs, quotas, and non-tariff barriers.