Item$3$

$2\mathrm{.}5$points

Time Remaining $24$ minutes $51$ seconds

$00$:$24$:$51$

References

Item $3$

Time Remaining $24$ minutes $51$ seconds

$00$:$24$:$51$

Long$-$Run Relationships$$Long$-$Run Cost Curve Exercise $3$

a$.$ Production is in the short run if

multiple choice $1$

at least one input is fixed.

the time period is less than $1$ year.

the time period is less than $3$ months.

at least one output is fixed.

b$.$ In the long run

multiple choice $2$

all inputs to production are variable.

one output will be variable, but the others are fixed.

management will only be able to fire workers who are hourly, not salary.

the firm must be in operation for at least $1$ year.

c$.$ In the long run, the average total cost curve is determined by

multiple choice $3$

the minimum of all short$-$run average variable cost curves at each output level.

differences in the number of workers employed.

differences in the number of hours a firm operates per day.

the minimum short$-$run average total cost curves at each output level.

d$.$ Typical long$-$run average total cost curves

multiple choice $4$

have a U$-$shape.

increase over all levels of output.

become negative for high levels of output.

decrease over all levels of output.