The main difference between the short run and the long run is that
A)firms earn losses in the long run, but not in the short run.
B)the long run always refers to a time period of one year or longer.
C)in the long run, only one input can be fixed.
D)in the short run, one or more inputs are fixed.

Question

Quizplus · Accepted Answer

In the short run, one or more inputs, such as capital or plant size, are fixed, while in the long run all inputs can be varied or adjusted. This means that the ability to change production levels and adjust to market conditions is limited in the short run, while in the long run firms have more flexibility and can adjust their production processes to be more efficient and profitable.

The Main Difference Between the Short Run and the Long