A long run total cost curve a. must be equal to zero when output is zero cross out b. may be greater than or equal to zero when output is zero cross out c. must be decreasing when output is zero cross out d. will be equal to fixed cost, which is greater than zero, when output is zero
A long run total cost curve a. must be equal to zero when output is zero cross out b. may be greater than or equal to zero when output is zero cross out c. must be decreasing when output is zero cross out d. will be equal to fixed cost, which is greater than zero, when output is zero
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQ
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Question
A long run total cost curve
a.
must be equal to zero when output is zero
cross out
b.
may be greater than or equal to zero when output is zero
cross out
c.
must be decreasing when output is zero
cross out
d.
will be equal to fixed cost, which is greater than zero, when output is zero
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