When the prices of all inputs increase by a proportionate amount:
A) the firm's total cost curve will remain unchanged since the cost-minimizing combination of inputs is unchanged.
B) the firm's total cost curve may rotate upward or may leave the long-run total cost curve unchanged.
C) will always rotate the long-run total cost curve upward.
D) could actually rotate the long-run total cost downward if the firm chooses to produce a lower level of output.
Correct Answer:
Verified
Q2: The relationship between the long-run total cost
Q3: The long-run total cost curve shows:
A)the various
Q4: When average cost is "u-shaped" (neither always
Q5: A long-run total cost curve:
A)must be equal
Q6: Assume that capital is measured along
Q7: A firm's long-run average cost curve is
Q8: When the price of all inputs increase
Q9: The long-run total cost curve tends to:
A)rotate
Q10: Suppose for a particular production function,
Q11: A long-run total cost curve:
A)always has a
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