Which of the following applies most generally to supply in the long run?
A)Average total cost must decline.
B)Producers are able to make change in all their factors of production.
C)Producers are only able to make change in their variable factors of production.
D)All original producers will leave the market.

Question

Quizplus · Accepted Answer

In the long run, producers have the ability to make changes in all their factors of production, including both fixed and variable factors. This allows them to fully adjust to changes in market conditions and optimize their production processes. The other options are not generally applicable to supply in the long run. Average total cost may not necessarily decline, producers are not limited to only changing their variable factors of production, and not all original producers will leave the market.

Which of the Following Applies Most Generally to Supply in the Long