In the long run which of the following is true? The size of a firm's physical plant can be changed but the firm cannot adopt new technology. Total cost = fixed cost + variable cost. The firm can vary its explicit costs but not its implicit costs. There are no fixed costs.

Question

Business

Evelin Stevens

15 November, 01:00

In the long run which of the following is true? The size of a firm's physical plant can be changed but the firm cannot adopt new technology. Total cost = fixed cost + variable cost. The firm can vary its explicit costs but not its implicit costs. There are no fixed costs.

+3

Answers (1)

Know the Answer?

Glenn Leblanc · Answer 1

There are no fixed cost

Explanation:

Indeed a company may not have fixed costs in the long run because of certain decisions or changes.

For example, if a company's only fixed costs is a piece of land (a fixed assets) it owns, and it then makes enough profit after 10 years that covers the cost of the land, it will no longer have fixed costs anymore.