Which of the following statements is TRUE?
A) In the long run, the average cost curve is always downward sloping.
B) In the long run, the quantities of all inputs are fixed.
C) In the long run, the firms' fixed costs are greater than its variable costs.
D) In the long run, all costs are variable costs.

Question

Quizplus · Accepted Answer

In the long run, all costs are variable because firms can adjust all inputs and there are no fixed costs.

Which of the Following Statements Is TRUE