Which of the following is not true in the long-run?
A) There are no variable costs.
B) There are no fixed costs.
C) Total costs equal variable costs.
D) Identical firms will make zero profits.

Question

Quizplus · Accepted Answer

In the long-run, all costs are variable as firms have the opportunity to adjust their production levels and thus, adjust their costs. Therefore, there are no fixed costs in the long-run.

Which of the Following Is Not True in the Long-Run