Consider the following cost data:

$\begin{array} { | l | c | c | c | c | c | c | c | }
\hline \text { Output } & 0 & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Total Cost (\$) } & 24 & 33 & 41 & 48 & 54 & 61 & 69 \
\hline
\end{array}$
-In the long run:
A)very few inputs can be adjusted
B)the law of diminishing marginal returns no longer has the same importance as in the short run
C)more variable inputs become fixed
D)business decisions become less efficient
E)output cannot be adjusted

Question

Consider the following cost data:

$\begin{array} { | l | c | c | c | c | c | c | c | } 
\hline \text { Output } & 0 & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Total Cost (\$) } & 24 & 33 & 41 & 48 & 54 & 61 & 69 \
\hline
\end{array}$
-In the long run:
A)very few inputs can be adjusted
B)the law of diminishing marginal returns no longer has the same importance as in the short run
C)more variable inputs become fixed
D)business decisions become less efficient
E)output cannot be adjusted

Quizplus · Accepted Answer

In the long run, all inputs can be adjusted, allowing firms to avoid the constraints that cause diminishing marginal returns in the short run. This makes the law of diminishing marginal returns less relevant in long-run analysis.

Consider the Following Cost Data -In the Long Run: A)very Few Inputs Can Be Adjusted

Consider the Following Cost Data -In the Long Run:
A)very Few Inputs Can Be Adjusted