econ 5.4-2 - A Inthelongrun C Intheshortrun A , Diminishingmarg

econ 5.4-2 - A Inthelongrun C Intheshortrun A ,...

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Which of the following is a long run adjustment? A. Two firms exit the asbestos removal industry. In the long run: C. firms have the ability to enter or exit the industry In the short run: A. some factors of production are variable, while at least one factor of production is fixed. Diminishing marginal returns implies that: B. marginal product is decreasing. When at least one factor of production is fixed, firms require more and more workers to produce each  additional unit of output. This describes: C. diminishing marginal returns. In the short run, the firm's total cost equals: B. the total fixed costs + the total variable costs. The long run average cost of production is defined as: D. total cost divided by the quantity of output the firm chooses when it can choose a production facility of any size.
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