Production and Cost

What is the distinction between the economic short run and the economic long run?

In the short run, at least one input is fixed, but in the long run, the firm can vary all inputs.

Graphically, the marginal cost curve is

a U shape, initially falling when the marginal product of labor is rising and then eventually rising when the marginal product of labor is falling.

Which of the following is most likely to be a variable cost for a business firm?

cost of shipping products.

Any cost that remains unchanged as output changes represents a firm's

fixed cost

Which of the following is most likely to be a fixed cost for a farmer?

insurance premiums on property

Any cost that changes as output changes represents a firm's

variable cost