The _______-run total cost of producing any quantity of output is simply the ___________ possible ________-run total cost of producing that quantity.
A) short, smallest, long
B) long, smallest, short
C) long, greatest, short

Question

Quizplus · Accepted Answer

The term "long-run" refers to the period of time required for a firm to adjust its inputs of both capital and labor in order to produce a desired level of output. In the long-run, all costs of production are variable. This means that a firm can adjust its output level as well as its input levels, such as labor and capital. The firm can change its production facility size or even change its location. As a result, the long-run total cost (LTC) gives the smallest possible cost of producing any quantity of output. Therefore, option B is the correct choice.

The _______-Run Total Cost of Producing Any Quantity of Output