In the long run,which of the following is likely to be a variable cost?
A)Factory rental but not wage costs.
B)Wage costs but not costs for equipment.
C)Interest payments on borrowed funds but not utilities.
D)Rent,wages,and all other costs are variable in the long run.

Question

Quizplus · Accepted Answer

In the long run, all costs are typically variable costs because the company has more flexibility to adjust its operations and expenses. This includes both factory rentals and wage costs (option A), costs for equipment and wage costs (option B), and interest payments on borrowed funds and utilities (option C).

In the Long Run,which of the Following Is Likely to Be