Question on: JAMB Economics - 2024

A major characteristics of a firm operating at a long-run equilibrium position is that

A
average variable cost is fixed
B
all costs can be varied
C
only variable cost changes
D
fixed cost can not be changed
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Correct Option: B

In the long run, a firm can adjust all inputs and costs because all factors are variable.

  • Option A: Average variable cost is not fixed in the long run.
  • Option B (Correct): All costs can be varied in the long run.
  • Option C: Only variable costs changing describes the short run.
  • Option D: Fixed costs can indeed change in the long run.

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