Which of the following statements is true?
A)In the short run, there are no fixed costs, only variable costs.
B)In the short run, there are fixed and variable costs, but in the long run there are only fixed costs.
C)In the short run, there are fixed and variable costs, but fixed costs are the only costs a firm is concerned with.
D)In the long run, there are no costs, fixed or variable.
E)none of the above

Question

Quizplus · Accepted Answer

In the short run, a firm incurs both fixed and variable costs. However, in the long run, all costs are variable because firms have the flexibility to adjust all inputs. None of the statements provided accurately describe these economic principles, making E the correct choice.

Which of the Following Statements Is True