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:

Proportionately Shared

Distributed or divided among parties in correlation to their respective shares or involvement.

Corporate Officer

An individual appointed by the board of directors of a corporation who is granted certain powers and responsibilities in managing the company.

Day-To-Day Operations

The routine activities necessary for the ongoing management and functionality of a business or organization.

General Partners

Individuals in a partnership who have unlimited liability and are responsible for the management of the partnership.