Question

"all cost are variable in long run" explain in 3 marks​

Answer 1

Answer:

The long-run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs, whereas, in the short run, firms are only able to influence prices through adjustments made to production levels. Additionally, while a firm may be a monopoly in the short term, they may expect competition in the long run.

In economics, long-run models may shift away from short-run equilibrium, in which supply and demand react to price levels with more flexibility.