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:

Forecasting

The practice of predicting future trends, demands, or events based on historical data and analysis.

Predicting

The process of forecasting future events, outcomes, or trends based on current or historical data, using various statistical, mathematical, or computational techniques.

Future

A period of time that has not yet happened but is considered in terms of potential events or developments.

Labor Input

The amount of work and effort provided by workers for the production of goods and services in an economy.