Why might equipment costs be short-run costs in one business but long-run costs in another?
a. The size and complexity of a business contributes to the nature of its capital costs.
b. Companies in business for a long time have established credit with equipment vendors.
c. Some equipment is poorly made and does not last through longer production runs.
d. Equipment is a variable input that is not affected by output or length of production.
a. The size and complexity of a business contributes to the nature of its capital costs.
Economics