At the planned output level, short-run average total cost equals long-run average total cost, but at all other points, short-run average total cost is higher than long-run average total cost.
Answer the following statement true (T) or false (F)
True
Since some inputs are fixed in the short run but all inputs are variable in the long run, any deviation from planned output must raise average total cost more in the short run than in the long run.
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If the economy experiences a negative supply shock, which of the following will be true?
A) Inflation will fall, and real GDP will fall. B) Inflation will rise, and real GDP will rise. C) Inflation will fall, and real GDP will rise. D) Inflation will rise, and real GDP will fall.
A partnership is limited to how many owners?
A) 2 B) 5 C) less than 10 D) There is no limit to the number of owners.
Liquidity preference theory indicates that at lower interest rates
A) investment is greater. B) money demand is greater. C) consumption is greater. D) money supply is greater.
When considering the change to the money demand curve, if the interest rate rises, the quantity demanded is:
A. lower, moving leftward along the money demand curve. B. higher, moving leftward along the money demand curve. C. lower, moving rightward along the money demand curve. D. higher, moving rightward along the money demand curve.