Asked by Micky Anderson on Sep 23, 2024
Verified
In the long-run,all costs are
A) Fixed costs
B) Variable costs
C) Sunk Costs
D) Marginal Costs
Fixed Costs
Costs that do not vary with output.
Variable Costs
Costs that change as output levels change.
Marginal Costs
The additional cost incurred in the production of one more unit of a good or service.
- Understand the concept of sunk costs, marginal costs, and their implications for decision-making.
Verified Answer
LN
Luyen Nguyen7 days ago
Final Answer :
B
Explanation :
In the long-run, all costs are considered variable costs because firms have the flexibility to adjust all inputs and production factors, unlike in the short-run where some costs are fixed.
Learning Objectives
- Understand the concept of sunk costs, marginal costs, and their implications for decision-making.