To economists, the main difference between the short run and the long run is that
A)the law of diminishing returns applies in the long run, but not in the short run.
B)in the long run all resources are variable, while in the short run at least one resource is fixed.
C)fixed costs are more important to decision making in the long run than they are in the short run.
D)in the short run all resources are fixed, while in the long run all resources are variable.

Question

Quizplus · Accepted Answer

In the long run, all resources and inputs can be varied by firms, allowing for adjustments in production capacity and operations. In contrast, the short run is characterized by at least one fixed input, such as capital, which cannot be easily adjusted. This distinction is crucial for understanding how firms respond to changes in the market and make decisions about production and investment.

To Economists, the Main Difference Between the Short Run and the Long