Firms' profits or production do not increase in the long run because:
A)some factors of production are fixed in the long run.
B)all the factors are variable in the long run.
C)changes in factor costs completely offset any change in price level.
D)there exists an excess capacity in the economy in the long run.
E)factor costs remain fixed in the long run.

Question

Quizplus · Accepted Answer

The Answer of Firms' profits or production do not increase in the long run because:
A)some factors of production are fixed in the long run.
B)all the factors are variable in the long run.
C)changes in factor costs completely offset any change in price level.
D)there exists an excess capacity in the economy in the long run.
E)factor costs remain fixed in the long run.

Firms' Profits or Production Do Not Increase in the Long