Table of contents

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0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

10. The Costs of Production

Average Total Cost: Short Run and Long Run

Microeconomics

10. The Costs of Production

Average Total Cost: Short Run and Long Run

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Multiple Choice

Which of the following is TRUE?

A firm plans in the short run and operates in the long run

In the long run, a firm can change all but one input

In the long run, all inputs are variable

In the short run, all inputs are fixed

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Verified step by step guidance

Understand the difference between short run and long run in microeconomics: In the short run, at least one input is fixed, while in the long run, all inputs can be varied.

Evaluate the statement 'A firm plans in the short run and operates in the long run': This is incorrect because firms plan and operate in both the short run and the long run.

Evaluate the statement 'In the long run, a firm can change all but one input': This is incorrect because in the long run, all inputs are variable.

Evaluate the statement 'The correct answer is: In the long run, all inputs are variable': This is true as it aligns with the definition of the long run in microeconomics.

Evaluate the statement 'In the short run, all inputs are fixed': This is incorrect because in the short run, at least one input is fixed, but not all.