It is impossible to: Multiple Choice o Identify variable costs in the long run

Economics Feb 10, 2021

It is impossible to:
Multiple Choice
o
Identify variable costs in the long run.
O
o
C)
Identify variable costs in the short run. Avoid fixed costs in the short run. Determine total costs in the short run.

Expert Solution

The correct option is 3rd "Avoid fixed costs in the short run". In the short run production period, at least one input is fixed and the quantities of all other factors of production are varied. Therefore there are fixed inputs and variable inputs in the short run

Fixed cost are the cost for the fixed factors of production which does not vary with the level of output. Fixed cost is constant. So, It is impossible to avoid fixed costs in the short run.

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