For any given output level,a firm's long-run costs
A)are always greater than or equal to its short-run costs.
B)are usually greater than or equal to its short-run costs except in the case of diminishing returns to scale.
C)are always less than or equal to its short-run costs.
D)are usually less than or equal to its short-run costs except in the case of diminishing returns to scale.

Question

Quizplus · Accepted Answer

In the long run, a firm can adjust all of its inputs and adopt the most efficient production technology, which means its costs for any given output level are always less than or equal to its short-run costs, where at least one input is fixed.

For Any Given Output Level,a Firm's Long-Run Costs