Which of the following statements is true?
a. in the short run, there are no fixed costs, only variable costs.
b. in the short run, there are fixed and variable costs, but fixed costs are the only costs a firm is concerned with.
c. in the long run, there are no fixed costs.
d. in the short run, there are fixed and variable costs, but in the long run there are only fixed costs.

The correct answer is option c.

Explanation:

The variable costs are the cost incurred on the variable factors of production. The fixed costs are the costs incurred on the fixed factors.  

In the short run, there are certain factors that are fixed and others that are variable. So in the short run, some costs are fixed and others are variable.  

But in the long run, there is enough time for all the factors to be changed. So all the factors are variable and cost incurred on these variables is also variable.  

So we can say that in the long run, there are no fixed costs.

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