Elasticity of total cost relative to the short-run

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Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs where appropriate. (When in doubt, always include a fully labeled graph.)

The long-run is characterized by a greater output elasticity of total cost relative to the short-run.

As output approaches zero, short-run fixed cost equals short-run average cost.

Reference no: EM131541464

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