The profit-maximizing decision in choosing the optimal levels of capital and labor in the long run is the same as the profit-maximizing decision in the short run.
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Q116: When capital increases, variable costs
A)increase at low
Q117: Some competitive firms are willing to operate
Q118: A firm that shuts down earns an
Q119: If a profit-maximizing, competitive firm is producing
Q120: The breakeven point for a competitive firm
Q122: The scale of a firm increases when
A)only
Q123: An expansion of capital increases fixed costs
Q124: Capital expansion causes the average total cost
Q125: When comparing countries with big labor supplies
Q126: Explain what happens to variable costs when
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