Which of the following observations is true?
A)In the long run, more costs become variable.
B)Fixed costs can be completely varied if the time period is sufficient.
C)Fixed costs arise when some types of inputs can be bought only in big batches.
D)Variable costs arise when inputs have a large productive capacity.

Question

Quizplus · Accepted Answer

In the long run, businesses have more flexibility to adjust their inputs and production processes, leading to a larger proportion of costs becoming variable. Over time, fixed costs can become more variable as businesses have the opportunity to change their long-term commitments and investments.

Which of the Following Observations Is True