Question

Which of the following observations is true?

a. Fixed costs can be completely varied if the time period is sufficient.
b. Fixed costs arise when some types of inputs can be bought only in big batches.
c. Variable costs arise when inputs have a large productive capacity.
d. In the long run, more costs become variable.

Answer 1

Which of the following observations is true?

d. In the long run, more costs become variable.

Step-by-step explanation:

The long run is a period of time in which all factors of production and costs are variable.