Use a diagram with one ordinary production isoquant and various isocost lines to show that a firm’s cost of producing a given level of output in the long run will always be less than or equal to its cost of producing that same level of output in the short run. To represent the short run, fix capital at one level, K₁. To do this, simply erase the portion of the isoquant that corresponds to capital levels higher than K₁. Explain intuitively why this must be the case.