Question 1
The decision by firms of how to produce output is based on
◦ techniques of production available.
◦ the price of output.
◦ the price of inputs.
◦ government oversight.
Question 2
Fixed costs
◦ do not exist in the long run.
◦ depend on a firm's level of output.
◦ are zero if a firm produces no output.
◦ are total costs minus average variable costs.