A major characteristics of a firm operating at a long-run equilibrium position is that

Source: JAMB · 2024

A major characteristics of a firm operating at a long-run equilibrium position is that

  1. all costs can be varied ✓
  2. average variable cost is fixed
  3. fixed cost can not be changed
  4. only variable cost changes
Explanation

In the long run, all costs become variable. Firms can change factory size, equipment, and workforce completely.

The short run has some fixed costs that cannot change. The long run allows everything to be adjusted.

Long run means enough time to change anything about the business, including building a new factory.

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