Which of the following is TRUE for a firm in the long run?
A. Variable costs will initially increase and then decrease.
B. All costs are variable costs.
C. The law of diminishing marginal product holds.
D. Variable costs will equal marginal cost at all output levels.
Answer: B
You might also like to view...
A sudden decrease in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Demand creating supply
Households supply four basic types of resources. They include all of the following except
a. natural resources b. final goods and services c. capital d. entrepreneurial ability e. labor
As the interest rate increases, _____
a. the supply of loanable funds increases b. the supply of loanable funds decreases c. the quantity supplied of loanable funds increases d. the quantity supplied of loanable funds decreases
If the nominal interest rate is higher than the inflation rate, the value of your savings:
A. should remain about the same. B. cannot be assessed without knowing the beginning balance of savings. C. will decrease. D. will increase.