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)all costs are variable costs
B)all costs are fixed costs
C)variable costs equal fixed costs
D)fixed costs are greater than variable costs
E)all costs become implicit costs

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)all costs are variable costs
B)all costs are fixed costs
C)variable costs equal fixed costs
D)fixed costs are greater than variable costs
E)all costs become implicit costs

Quizplus · Accepted Answer

In the long run, all costs are considered variable costs because firms have the flexibility to adjust all inputs. Fixed costs, by definition, do not exist in the long run as all costs can be adjusted.

Consider the Following Cost Data -In the Long Run: A)all Costs Are Variable Costs B)all

Consider the Following Cost Data -In the Long Run:
A)all Costs Are Variable Costs
B)all