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Average Total Cost: Short Run and Long Run
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Problem 9
Average Total Cost: Short Run and Long Run
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10. The Costs of Production / Average Total Cost: Short Run and Long Run / Problem 5
Problem 5
In the long run, how do fixed costs transition, and what does this imply for a firm's decision-making?
A
Fixed costs increase, forcing firms to reduce output.
B
Fixed costs remain constant, limiting firms' ability to change production.
C
Fixed costs become variable, allowing firms to adjust their production capacity.
D
Fixed costs decrease, leading firms to expand production.
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