Along its long-run average total cost curve,a firm employs
A)a different amount of fixed inputs at each point
B)the same amount of fixed inputs at each point
C)a declining amount of fixed inputs at each point as it moves to higher output levels
D)an increasing amount of fixed inputs at each point as it moves to higher output levels
E)no fixed inputs

Question

Quizplus · Accepted Answer

In the long run, all inputs are variable, so there are no fixed inputs. The long-run average total cost curve reflects the cost of production when a firm can adjust all inputs.

Along Its Long-Run Average Total Cost Curve,a Firm Employs