Which of the following is true about short-run and long-run pricing decisions?
A)Short-run decisions include pricing for a special order with no long-term implications.
B)Short-run decisions typically have a time horizon of two years or more.
C)Short-run decisions include pricing a main product in a major market.
D)Long-run decisions include pricing for a special order with no short-term implications.

Question

Quizplus · Accepted Answer

Short-run pricing decisions are usually for a specific event or circumstance that will not have long-term implications. Pricing for a special order would fall under this category. The other options, pricing a main product in a major market or having a time horizon of two years or more, suggest longer-term decisions, which would fall under long-run pricing decisions.

Which of the Following Is True About Short-Run and Long-Run