how-does-the-absence-of-fixed-costs-in-the-long-run-influence-a-firms-decision-t

Question

How does the absence of fixed costs in the long run influence a firm's decision to produce?

Accepted Answer

It makes all costs variable, allowing the firm to decide based on total costs.

Answer

It allows the firm to focus solely on covering variable costs.

Answer

It forces the firm to exit the market immediately.

Answer

It has no effect on the firm's decision to produce.