Which of the following statements best represents a difference between short-run and long-run cost?
A)Less than one year is considered the short run; more than one year the long run.
B)There are no fixed costs in the long run.
C)In the short-run labor must always be considered the variable input and capital the fixed input.
D)All of the above are true.

Question

Quizplus · Accepted Answer

In the long run, all costs are variable, allowing firms to adjust all inputs. This contrasts with the short run, where some costs are fixed because not all inputs can be adjusted in the short term.

Which of the Following Statements Best Represents a Difference Between