Consider a firm making production decisions in the long run. Select the statement(s) that must be correct. Choose one or more: A. Average total cost will always exceed average variable cost. B. Average total cost cannot decline as output increases, at any level of output. C. Average total cost is flatter than the short-run average total cost. D. Average variable cost is flatter than the short-run average variable cost.

Option C is correct one.

Average total cost is flatter than the short-run average total cost.

Explanation:

In a long run there is no distinction between normal absolute expense and normal variable expense. The distinction between the normal expense and normal variable expense is the normal fix cost which diminishes as amount increments. Since quite a while ago run ATC can be biggest equivalent to short run normal cost bend. Therefore ATC is compliment than the short run normal all out expense.

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