In the long run, which statement is true?

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Multiple Choice

In the long run, which statement is true?

Explanation:
In the long run, a firm can adjust all inputs, including plant size, equipment, and technology. Because nothing is fixed in this period, there are no fixed costs; every expense can vary with the level of output. This means total costs respond to how much you produce, not some portion that must stay the same regardless of output. So the statement that best fits is that all costs are variable. The other options imply fixed or unpredictable costs, which isn’t consistent with the idea that, given enough time, a firm can change every input to fit its production plan.

In the long run, a firm can adjust all inputs, including plant size, equipment, and technology. Because nothing is fixed in this period, there are no fixed costs; every expense can vary with the level of output. This means total costs respond to how much you produce, not some portion that must stay the same regardless of output.

So the statement that best fits is that all costs are variable. The other options imply fixed or unpredictable costs, which isn’t consistent with the idea that, given enough time, a firm can change every input to fit its production plan.

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