Question

Which of the following statements in Economics is NOT correct?

• A. Total cost is the sum of the total variable cost and the total fixed cost.
• B. Average fixed cost curve is downward sloping.
• C. Short run marginal cost, average variable cost and short run average cost curves are "U-shaped
• D. In the long run, all inputs are fixed.

Answer 1

Answer:

D. In the long run, all inputs are fixed.

• In the long run, all inputs are variable, not fixed.

• Therefore, statement 3 is incorrect.