Question

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

NCERT Class XII
Economics - Introductory Microeconomics

Chapter 3. Production and Costs

Answer 1

No there is no fixed cost in the long run.Because producer can make change in all factors of production due to long period of time.

Answer 2

No there cannot be any fixed cost in the long run because of the following reasons:

1. In short run a firm cannot regulate all the costs of the firm. So it has to manage by varying few factors and adjusting its production levels.
2. An entrepreneur cannot vary factors like land, machinery etc. in the short run. However, in the long run when the entrepreneur is able to make profits she/he can vary all the factors of production.
3. Thus, since there will no fixed factors in the long run, there will no fixed costs in the long run.