a. Production is in the short run if
multiple choice 1
the time period is less than 1 year.
at least one input is fixed.
at least one output is fixed.
the time period is less than 3 months.
b. In the long run
multiple choice 2
one output will be variable, but the others are fixed.
all inputs to production are variable.
management will only be able to fire workers who are hourly, not salary.
the firm must be in operation for at least 1 year.
c. In the long run, the average total cost curve is determined by
multiple choice 3
differences in the number of workers employed.
the minimum of all short-run average variable cost curves at each output level.
differences in the number of hours a firm operates per day.
the minimum short-run average total cost curves at each output level.
d. Typical long-run average total cost curves
multiple choice 4
become negative for high levels of output.
increase over all levels of output.
decrease over all levels of output.
have a U-shape.