If all inputs are variable in the long run,then there cannot be decreasing returns to scale.But if some inputs remain fixed in the long run,then decreasing returns to scale can occur.

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This statement is true. If all inputs are variable in the long run, then the firm can adjust its production levels to optimize its efficiency. This means there cannot be decreasing returns to scale. However, if some inputs remain fixed in the long run, then the firm may eventually reach a point where adding more variable inputs will no longer increase output proportionally. This occurs when the firm experiences decreasing returns to scale.

If All Inputs Are Variable in the Long Run,then There