5.4 Discussion: Economics and You - Explain Why There Are No Fixed Costs in the Long Run (Ch.7)

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Explain why there are no fixed costs in the long run

A firm faces no fixed costs in the long run. To help understand this idea, let's consider some applications that we may run into. For this discussion, your task is to:

1. Pick a cost that is fixed in the short run for either a real-world or hypothetical firm connected to your career path or field of interest.
2. Explain why, in the long run, this cost is likely to become variable for that firm.