Assertion: The total cost and the total variable cost coincide in the long run. 

Reasoning: There are no fixed costs in the long run. 

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

The correct answer is Option 1: Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

✔ Assertion (A) is correct:

• Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC).
• In the long run, all costs become variable, meaning TFC = 0.
• Thus, TC and TVC are the same in the long run, as there are no fixed costs to add.

✔ Reasoning (R) is also correct and explains the assertion:

• In the long run, firms can adjust all inputs, so fixed costs do not exist.
• Since all costs are variable, only TVC remains, and TC = TVC.
• This correctly explains why TC and TVC coincide in the long run.

Therefore, the reasoning correctly explains the assertion.