Explore BrainMass

Explore BrainMass

    long term and short term

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    It has been said that, "In the long run, all costs are variable." If this is the case, how can production be studied by dividing costs into fixed and variable components?

    MBA

    © BrainMass Inc. brainmass.com March 4, 2021, 7:18 pm ad1c9bdddf
    https://brainmass.com/economics/short-and-long-run-cost-functions/long-term-short-term-costs-92787

    Solution Preview

    See the attached file. thanks

    It has been said that, "In the long run, all costs are variable." If this is the case, how can production be studied by dividing costs into fixed and variable components?

    The fixed costs are the costs, which are to be incurred irrespective of the volume of the production. Even if the production is at zero unit level these costs are incurred and cannot be avoided. The variable costs are the costs, which vary with the volume of the production. So the firm can reduce or increase ...

    Solution Summary

    The distinction between long term and short term is denoted.

    $2.49

    ADVERTISEMENT