In comparing long-run and short-run costs,which of the following statements is true at each level of output?
A)long-run total cost is always less than short-run total costs
B)long-run total cost cannot exceed short-run total cost
C)long-run and short-run total costs are equal when fixed costs are large
D)firms usually make decisions about production levels based on long-run costs rather than short-run costs
E)short-run total cost cannot exceed long-run total cost

Question

Quizplus · Accepted Answer

In the long run, firms can adjust all inputs and choose the most cost-efficient production method, so long-run total cost cannot exceed short-run total cost, where some inputs are fixed.

In Comparing Long-Run and Short-Run Costs,which of the Following Statements