It's easy to determine if a firm is making long-run production decisions by looking at its cost structure because,in the long run,a firm does NOT have any ________ costs.
A) opportunity
B) sunk
C) fixed
D) variable
E) marginal

Question

Quizplus · Accepted Answer

In the long run, all costs become variable and therefore there are no fixed costs. Opportunity costs and sunk costs are not relevant to long-run production decisions, while variable and marginal costs still exist in the long run.

It's Easy to Determine If a Firm Is Making Long-Run