Which of the following is true in the long-run?
A)A firm can vary all the inputs used in production.
B)A firm can vary only one of the inputs used in production.
C)All inputs used in production are fixed in the long-run.
D)The level of output produced cannot be varied.
E)In the long-run the marginal cost of production is zero.

Question

Quizplus · Accepted Answer

In the long-run, all inputs are variable and a firm can vary all the inputs used in production to adjust the level of output produced. This is because in the long-run there are no fixed inputs, unlike in the short-run where at least one input is fixed. Therefore, choice A is the correct answer.

Which of the Following Is True in the Long-Run