Which statement is true?   Long-run average costs are the same or more than short-run average costs.   Long-run average costs equal long-run marginal costs for every level of output.   None of these answers is correct. You Answered  Long-run average costs are increasing due to diminishing marginal product. Correct Answer  Long-run average costs are the lower envelope of short-run average cost curves.

Multiple Choice QuestionHow do economies of scale affect long-run average total costs for a firm?Multiple choice question.Long-run average total costs remain the same over a wide range of output.Long-run average total costs decline over a wide range of output.Long-run average total costs rise over a wide range of output.Not enough information is provided to determine the answer.

Discuss the relationship between short-run average variablecost and short-run marginal cost.(e) (1 mark) Discuss the relationship between short-run total variablecost, short-run total Öxed cost, and short-run total cost.(f ) (4 marks)Discuss the relationship between short-run average variablecost, short-run average Öxed cost, and short-run average total cost

The short-run marginal and average variable cost curves for a competitive firm are given by MC = 2+2q and AVC = 2+q. The profit-maximizing level of output for a firm is 4 and its total fixed cost is $18. Which of the following must be true about the firm? Group of answer choices The firm is charging a price of $4 and covering its average variable cost, hence it should continue operating in the short-run. The firm is charging $10 and will remain in the industry in the short-run; but it is not covering its total costs and will consider leaving the industry in the long run. The firm is charging a price of $4 and making a short-run loss, hence it should shut down immediately. The firm is charging a price of $10 and making a zero profit, hence it should shut down eventually. The firm is charging a price of $10 and making a positive profit, hence it will remain in the industry in the long-run.

Which statement is true? Group of answer choicesThe long-run supply curve for a competitive firm is its long-run marginal cost curve above the minimum of AVC.The long-run supply curve for a competitive firm is its long-run marginal cost curve above the minimum of ATC.The long-run supply curve for a competitive firm is its long-run marginal cost curve above the minimum of AFC.The long-run supply curve for a competitive firm is its long-run marginal cost curve.None of the above.

What is the difference between a firm's short-run and long-run costs?a. Short-run costs are always lower than long-run costs.b. In the short run, some costs are fixed, while in the long run, all costs are variable. c. In the short run, all costs are variable, while in the long run, some costs are fixed.d. Short-run costs are always higher than long-run costs.