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    Short-Run Average and Total Cost

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    True or False? Please explain your reasoning.

    a. The short-run average total cost can never be less than the long-run average total cost.
    b. The short-run average variable cost can never be less than the long-run average total cost.
    c. In the long run, choosing a higher level of fixed cost shifts the long-run average total cost curve upward.

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    https://brainmass.com/economics/short-and-long-run-cost-functions/short-run-average-total-cost-158979

    Solution Preview

    (1) the short-run average total cost can never be less than the long-run average total cost- T

    This is because long-term unit costs usually are less than short-term unit costs b/c over a long period of time, companies can change their operations ...

    Solution Summary

    The solution determines the short-run average and total cost.

    $2.19