Question

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

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Answer #1

B)- The short-run total cost is greater than or equal to the long-run total cost.

In long run, firm has adequate period to plan its input to create output in the minimum costly way though long run cost have no static aspects of production, due to availability of less time, firm has no control over fixed costs. Whether it rises or falls production, it will have to tolerate static prices which they once experienced. And this is why short run total cost remain greater than or equal to long run total cost curve.

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