11 The shortrun total cost of producing some level of output

11. The short-run total cost of producing some level of output can never be lower than long-run total cost. a. True b. False

Solution

TRUE- The short run cost curve will be greater than or equal to the long run cost curve. This is because in the short run firms got less time so they have little control over the cost of production. But in the long run the firms have got plenty of time so they can adjust their costs so there is no fixed factors of production.