A firm's long run cost is the cost of production when the firm
A) calculates its cost at least one year into the future.
B) adds together all of its short run costs.
C) uses the economically efficient quantities for its plant and its labor.
D) can vary the amount of output it produces.

Question

Quizplus · Accepted Answer

In the long run, a firm can adjust all inputs and choose the most economically efficient combination of resources, including plant size and labor, to minimize costs.

A Firm's Long Run Cost Is the Cost of Production