How long is the long run?
a. long enough that all costs can become variable
b. long enough that all costs can become fixed
c. long enough for the firm to make a profit.
d. long enough for diminishing returns to set in
Ans: a. long enough that all costs can become variable
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Using productive resources to make capital goods requires that we
A) get everyone to agree on the best use of those resources. B) get government approval of our plan to make capital goods. C) forgo some level of current consumption. D) prove that the existence of the capital goods will not cause any environmental damage.
The total fixed cost of operating a lumberyard equals $12,000 this year. The average fixed cost of the lumberyard will not be affected by the quantity of lumber that is sold
a. True b. False Indicate whether the statement is true or false