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Questions
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.
Give Reasons
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Solution
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.
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Cost - Fixed Cost
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Chapter 22: Model Short Answer Questions - MODEL SHORT ANSWER QUESTIONS [Page 468]
