Which statement is false?

A. Short-run cost assumes a fixed capital size, while long-run cost includes all possible capital levels in determining cost.
B. Short-run total cost can never be less than long-run total cost at any given output level.
C. Short run ATC and long run ATC are never equal except at the minimum point on the long run ATC curve.
D. Long-run marginal cost never intersects long-run average cost as long as increasing returns to scale are present.


Answer: C

Economics

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