Question

Can there be some fixed cost in the long run? If not, why?

Can there be some fixed costs in the long run? Give reasons for your answer.

Answer 1

No, there cannot be any fixed cost in the long run. In the long run, a firm has enough time to modify factor ratios and can change the scale of production. There is no fixed factor, as the firm can change the quantity of all the factors of production, and therefore there cannot be any fixed cost in the long run.