Which of the following observations is true?
A)In the long run, more costs become variable.
B)Fixed costs cannot be completely varied if the time period is sufficiently long.
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, all costs become variable as firms can adjust all inputs and production factors.

Which of the Following Observations Is True