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 fixed costs.

Question

Quizplus · Accepted Answer

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

Which of the Following Statements Is True