The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-In the long run,
A)some resources are variable and some resources are fixed.
B)all the resources can be varied.
C)all resources are fixed.
D)at least one resource is fixed.
E)there are no explicit costs.

Question

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5
 
-In the long run,
A)some resources are variable and some resources are fixed. 
B)all the resources can be varied. 
C)all resources are fixed. 
D)at least one resource is fixed. 
E)there are no explicit costs.

Quizplus · Accepted Answer

In the long run, all resources can be varied. This means that there are no fixed resources in the long run, and the firm can adjust its inputs according to its production level. Therefore, the best choice is B - all the resources can be varied.

The Table Given Below Shows the Average Total Cost of Production