Which of the Following Is True of the Long Run

question 50

Multiple Choice

Which of the following is true of the long run?

• A) The average fixed cost is higher in the long run than in the short run.
• B) All inputs costs are variable in the long run.
• C) The firm produces at a higher cost in the long run than in the short run.
• D) All inputs to production are kept fixed in the long run.
• E) Answers the average fixed cost is higher in the long run than in the short run and all inputs costs are variable in the long run are both correct.

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Definitions:

Semi-annually

Occurring twice a year, typically used in the context of payments, compounding, or reporting periods.

Interest Rate

The ratio of interest a borrower must pay to a lender for using their money.

Monthly Payments

Monthly payments refer to the regular amounts paid monthly on a loan or lease over the duration of the agreement.

Rate Of Return

The advantage or disadvantage in the fiscal valuation of an investment over a designated period, communicated as a percentage of the investment's primary expense.