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There is no fixed answer because all costs are subject to change in the long-run.

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Q: What are fixed costs in the long run?
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What is the difference between short-run costs and long-run costs?

For a given configuration of plant and equipment, short-run costs vary as output varies. The firm can incur long-run costs to change that configuration. This pair of terms is the economist's analogy of the accounting pair, above, variable and fixed costs


Compare between the short run and long run costs using all categories of coststotal costtotal average costfixed costvariable costaverage fixed costaverage variable cost?

In the short run, all costs are considered variable except for fixed costs, which remain constant. Total cost in the short run can fluctuate due to changes in variable costs, affecting average total cost. In the long run, all costs become variable, allowing for more flexibility in adjusting production levels to optimize efficiency and minimize costs. Fixed costs become average fixed cost and average variable cost in the long run as they spread over more units of production.


Do fixed and variable costs affect short-run marginal cost?

Fixed costs do not affect short-run marginal cost because they are just that- fixed. They are not dependent on quantity when it changes and does not vary directly with the level of output. Variable costs, however, do affect short-run marginal costs.


For a firm to operate in the shortrun the total revenue must at least be equal to Why?

A firm would still operate if revenues are below total coots, but not if revenues are below variable costs. The reason is that as long as revenues are above variable costs, the firm will earn a difference to contribute to the fixed costs (fixed costs are costs that a company has to pay in the short-run whether it operates or not). If the firm stops operating in the short-run, it will have to pay for the full fixed costs (e.g., rent, some fixed labour) If revenues are below variable costs, for every unit of production, the company loses the difference and does not contribute to the fixed costs. It is more economical to shutdown in the short-run.


Why it is sometimes difficult to separate costs into variable costs and fixed costs?

Some costs are semi-variable, e.g. electricity, maintenance, and rise with output but not inproportion. Labour may be fixed in the short run.


Why it is sometimes difficult to separate costs into variable and fixed costs?

Some costs are semi-variable, e.g. electricity, maintenance, and rise with output but not inproportion. Labour may be fixed in the short run.


If a firm decides to produce no output in the short run its costs will be?

its fixed cost


Is an Attorney's retainer a fixed or variable cost?

It is fixed in the short run, and variable in the long run


Definition of step costs?

step cost : its a cost that is fixed cost during the short run within the relevant range , and it will become variable cost over the long run as supervisory salary .


What does fixed costs means?

what does fixed costs mean


Why are Fixed costs also called capacity costs?

Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.


Variable costs are relevant and fixed costs are irrelevant?

Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.