(Answered) In the long run, all costs areredundantvariablefixedoperationalIn the long run, all costs…

➤ When should I treat a cost as sunk versus variable?
Treat a cost as sunk if past spending cannot be recovered or changed by current choices. Ignore sunk costs when deciding to expand, contract, or shut down. If a cost can be avoided by future actions, treat it as variable and include it in marginal cost and average cost calculations.