In the long run, Total cost equals Total Fixed CostGroup of answer choicesTrueFalse
Question
In the long run, Total cost equals Total Fixed CostGroup of answer choicesTrueFalse
Solution
False. In the long run, total cost equals the sum of total fixed costs and total variable costs. Total fixed costs are costs that do not change with the level of output, such as rent or salaries. Total variable costs are costs that do change with the level of output, such as raw materials or hourly wages. Therefore, total cost in the long run is not just total fixed costs.
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