Unformatted text preview: implies decreasing AC 2. constant returns implies constant AC 3. decreasing returns implies increasing AC D. Long-run and short-run costs 1. long run: all inputs variable 2. short run: some inputs fixed E. Fixed and quasi-fixed costs 1. fixed: must be paid, whatever the output level 2. quasi-fixed: only paid when output is positive (heating, lighting, etc.)...
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- Spring '08
- Economics, Economics of production