In the long run,
A)all of the firm's input quantities are variable.
B)the firm can vary the quantities of some but not all inputs.
C)managers become less efficient.
D)the total cost of producing any given level of output is greater than or equal to the short-run total cost of producing that level of output.

Question

Quizplus · Accepted Answer

In the long run, all input quantities are variable, meaning a firm can adjust its inputs, such as production technology and labor, to achieve a desired level of output. This is unlike the short run, where at least one input quantity is fixed or cannot be easily adjusted. Therefore, the long-run total cost of producing any given level of output is expected to be less than or equal to its short-run total cost.

In the Long Run