LONG-RUN TOTAL COST: The opportunity cost incurred by all of the factors of production used in the long run (when all inputs are variable) by a firm to produce of a good or service, including wages paid to labor, rent paid for the land, interest paid to capital owners, and a normal profit paid to entrepreneurs. Unlike short-run total cost, long-run total cost can not be separated into fixed cost and variable cost. In the long run, all inputs are variable, so all cost is variable. See also | long run | total cost | long-run average cost | long-run marginal cost | short run | fixed input | variable input | economies of scale | increasing returns to scale | diseconomies of scale | decreasing returns to scale |
