Assertion (A): Fixed costs exist in the long run.
Reason (R): In the long run all inputs can be varied.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A is false: when every input can be varied, every cost can be varied; there are no fixed costs.
R is true and is the reason A fails.

Concept: No fixed costs in the long run
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsFixed and variable cost

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Ten questions from Cost Curves, at your own pace.

Assertion (A): Fixed costs exist in the long run.Reason (R): In the long run all inputs can be varied.

Explanation

Assertion (A): Fixed costs exist in the long run.
Reason (R): In the long run all inputs can be varied.