Question

1. In the long run:

a. all costs are variable costs.

b. all costs are fixed costs.

c. variable costs equal fixed costs.

d. fixed costs are greater than variable costs.

2. Economies of scale are indicated by:

a. the rising segment of the average cost curve.

b. the declining segment of the average cost curve. 

c. the difference between total revenue and total cost.

d. a rising marginal cost curve.