Question

The short-run total cost of producing some level of output can never be lower than long-run...

The short-run total cost of producing some level of output can never be lower than long-run total cost.

a. True

b. False

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

(a) True

yes, this statement is true. This is because in short run firm has no flexability over some of its inputs where as in the long run they have this advantage to choose all the inputs as the optamality condition demands. Hence whatever is the amount of output is to produced, the combination of inputs can atmost be equal in terms of cost of production as long run combination can always mimic the short run combination of inputs but short run combination can not mimic the long run combination.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
True, False or Uncertain: "Long-run cost is always lower than that of short-run cost". Explain.
True, False or Uncertain: "Long-run cost is always lower than that of short-run cost". Explain.
which statement about the long-run and short-run total cost curve is true A none of the...
which statement about the long-run and short-run total cost curve is true A none of the answers B the short-run total cost is greater than or equal to the long-run total cost C for a given level of output it is possible that the short-run cost is less than the long-run cost D the short-run total cost is always greater than the long-run total cost
Regardless of the level of output, the long run average total cost curve is the least...
Regardless of the level of output, the long run average total cost curve is the least expensive cost curve.  True  False
The reason why, beyond some output level, the short-run variable and short-run total cost curves begin...
The reason why, beyond some output level, the short-run variable and short-run total cost curves begin to increase at an increasing rate, or equivalently, the short-run marginal cost curve begins to rise is Select one: a. increasing returns to scale b. diminishing marginal product c. decreasing returns to scale d. diminishing marginal rate of technical substitution
In the short run, the greater the level of output, the Lower the total variable cost....
In the short run, the greater the level of output, the Lower the total variable cost. Greater the total variable cost. Greater the average fixed cost. Lower the total fixed cost. Greater the total fixed cost. The question below (24) is based on the following demand schedule for a monopolist:             ______________________________________________________________                P ($)             Q (units)                      TR ($)              MR ($)                  (2)                       (3) = (2)              (4) ______________________________________________________________     160                  1     150                  2                 140                 ...
If a competitive firm maximizes short−run profits by producing some quantity of​ output, which of the...
If a competitive firm maximizes short−run profits by producing some quantity of​ output, which of the following must be TRUE at that level of​ output? A. MR≻MC. B. p≻MC. C. p≻AVC. D. All of the above.
Output per person in the long run can be higher than before a shock occurs, even...
Output per person in the long run can be higher than before a shock occurs, even if the shock causes the level of output per person to fall immediately. a. True b. False
As a firm increases the level of output that it produces, short-run average fixed cost rises...
As a firm increases the level of output that it produces, short-run average fixed cost rises and then falls. remains constant since fixed costs are constant. decreases. decreases up to a particular level of output and then increases. Flag this Question Question 22 pts Suppose that a firm is currently producing 500 units of output. At this level of output, TVC = $1,000 and TFC = $2,500. What is the firms ATC? $2 $5 $7 $10 Flag this Question Question...
If a short-run equilibrium occurs at a level of output above the long-run level of aggregate...
If a short-run equilibrium occurs at a level of output above the long-run level of aggregate supply, then in the transition to the long run what will happen to the price level and to the LM curve?
7. Long-run average cost curves The following graph shows the short-run average total cost curves and...
7. Long-run average cost curves The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (SRATCSRATC) and the long-run average cost curve (LRACLRAC); for example, Q1Q1 marks the point of tangency between SRATC1SRATC1 and LRACLRAC. The orange point on SRATC1SRATC1 indicates the firm's current output level in the short run (Q2Q2). COST PER UNITQUANTITY OF...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT