In the long run which of the following is true?
A)Total cost = fixed cost + variable cost.
B)The size of a firm's physical plant can be changed but the firm cannot adopt new technology.
C)There are no fixed costs.
D)The firm can vary its explicit costs but not its implicit costs.

Question

Quizplus · Accepted Answer

In the long run, all costs are variable, meaning there are no fixed costs. Firms can adjust all inputs, including physical plant size and technology, and can vary both explicit and implicit costs.

In the Long Run Which of the Following Is True