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Zorluk: KolayLong-Run Costs and Production

Which of the following statements correctly describes a firm's inputs in the long run?

  1. All factors of production are variable, enabling the firm to expand or contract its overall scale.Cevap
  2. B
    At least one factor of production remains fixed while all other factors vary.
  3. C
    Total fixed costs increase at a constant rate alongside total variable costs.
  4. D
    Variable costs become zero because the scale of plant size is completely fixed.

Cevap

All factors of production are variable, enabling the firm to expand or contract its overall scale.
The long run is an operational timeframe during which a firm can change all its inputs (labor, capital, land, and entrepreneurship). Consequently, all costs are variable in the long run, allowing the firm to choose its optimal scale of production.

Adım Adım Çözüm

1
Identify the time horizon in economic theory.
The long run is defined as a period long enough for a firm to adjust all of its factor inputs.
Unlike the short run, where plant capacity is fixed, the long run allows complete flexibility in altering scale.
2
Determine input variability.
Since all factors (capital, labor, land, machinery) can be varied, there are no fixed costs in the long run.
Firms can change their plant size, technology, and equipment completely.

Anahtar Kavram

Long-run production inputs variability
Tahmini Süre:45s
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Long-Run Costs and Production

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