Question 22
1 pts
22. This question tests your understanding of production, costs, revenue,
and profit, and the distinction between the short run and the long run.
Here are four statements about production in the short and long run.
I Production always takes time.
II Production requires at least two factors of production.
III In the short run, a firm would shut down operations if AVC is
expected to exceed price.
IV In the long run, a firm would leave the industry if ATC is expected to
exceed price.
Choose the correct option from the list below.
Only II, III, and IV are true
All four statements are true
Only III and IV are true
Only I, III, and IV are true
Only I and II are true
