For a given level of output,the short-run total cost of production
A)always falls below the long-run total cost of production
B)always exceeds the long-run total cost of production
C)always equals the long-run total cost of production
D)may exceed or equal the long-run total cost of production
E)may exceed or fall below the long-run total cost of production

Question

Quizplus · Accepted Answer

In the short run, at a given level of output, there may be some fixed costs that cannot be changed. Therefore, short-run total costs may be higher or equal to the long-run total cost, where all inputs can be adjusted to the level of output. Hence, the short-run total cost may exceed or equal the long-run total cost of production.

For a Given Level of Output,the Short-Run Total Cost of Production