Although Capital Is a Variable Factor in the Long Run

Multiple Choice

Although capital is a variable factor in the long run, once chosen it becomes a fixed factor for a long time. A profit- maximizing firm must therefore select a method of production that is

A) currently economically efficient.
B) labour intensive, as labour is always a variable factor.
C) currently economically efficient and sufficiently flexible to adapt to changing factor prices over time.
D) technologically advanced beyond anything currently used.
E) adaptable to wide ranges of output over time.