How much would it cost to run a small farm?

Long-run cost curves are always lower than short-run cost curves because the firm has the flexibility to chang?

  • Long-run cost curves are always lower than short-run cost curves because the firm has the flexibility to change both labor and capital in the long run. true false

  • Answer:

    True, so it can avoid diminishing returns (a short run phenomena). However, it will then have to deal with returns to scale, which may be increasing, decreasing or constant. (a long run phenomena)

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