Short run costs and long run costs are treated separately because in t…

Question

Short run costs and long run costs are treated separately because in the long run:

Accepted Answer

B. Costs behave differently

1. The time horizon changes which inputs a firm can adjust.
2. Short run costs are different from long run costs.
3. The origins of cost are discussed in both the short and long run.
4. In the long run every input can be varied, so nothing stays fixed.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 7 'Production, Costs and Industry Structure', sections 7.1-7.4_

Answer

Costs are always fixed

Answer

Costs cannot be measured

Answer

Costs are always zero

Short run costs and long run costs are treated separately because in the long run:

Keep practising Production, Costs and Industry Structure