Question

In economic theory, in the short run market period all the costs are ____________.

• A. Fixed
• B. Variable
• C. Controllable
• D. Semi variable

Answer 1

The correct option is A Fixed

• In the short run, there are both fixed and variable costs.
• The short-run costs increase or decrease based on variable cost as well as the rate of production. If a firm manages its short run costs well over time, it will be more likely to succeed in reaching the desired long-run costs and goals.