Which of the following statements does not describe the relationship between production functions and cost curves? Production functions and cost curves are unrelated. The shapes of the average product and marginal product functions are inverses of the shapes of average cost and marginal cost. If the production function exhibits constant returns to scale, both long-run average and long-run marginal costs will be constant regardless of output. If some inputs are held constant in the short run, diminishing returns to those inputs that are variable will result in average and marginal costs increasing as output expands.
Which of the following statements does not describe the relationship between production functions and cost curves?
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Production functions and cost curves are unrelated. |
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The shapes of the average product and marginal product functions are inverses of the shapes of average cost and marginal cost. |
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If the production function exhibits constant returns to scale, both long-run average and long-run marginal costs will be constant regardless of output. |
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If some inputs are held constant in the short run, diminishing returns to those inputs that are variable will result in average and marginal costs increasing as output expands. |
