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Microeconomics
Learn the toughest concepts covered in Microeconomics with step-by-step video tutorials and practice problems by world-class tutors
The Costs of Production
Average Total Cost: Short Run and Long Run
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1
concept
ATC in the Short Run and Long Run
13m
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2
Problem
A short-run production function assumes that
A
The level of output is fixed
B
The usage of at least one input is fixed
C
All inputs are fixed inputs
D
Both (a) and (b)
E
Both (b) and (c)
3
Problem
Which of the following is TRUE?
A
A firm plans in the short run and operates in the long run
B
In the long run, a firm can change all but one input
C
In the long run, all inputs are variable
D
In the short run, all inputs are fixed
4
Problem
If a higher level of production allows workers to specialize in particular tasks, a firm will likely exhibit ______________ and ________________ average total cost.
A
Economies of Scale; Falling
B
Economies of Scale; Rising
C
Diseconomies of Scale; Falling
D
Diseconomies of Scale; Rising