Which of the following represents the key difference between the short run and the long run?
A) In the long run, the firm makes commitments to a certain type of production technology which are represented as fixed costs in the long run. For example, they have signed a lease on a particular production facility. These fixed costs do not exist in the short run.
B) In the short run, the firm makes commitments to a certain type of production technology, which are represented as fixed costs in the short run. For example, they have signed a lease on a particular production facility. These fixed costs do not exist in the long run.
C) The short run refers to less than two years and the long run in over two years.
D) None of the above are correct.
Correct Answer:
Verified
Q12: A firm has $200 million in total
Q18: Variable inputs are defined as any resource
Q24: Economists say that a firm has a
Q28: Economic profit is:
A) always less than zero.
B)
Q30: An economist left his $100,000-a-year teaching position
Q31: Economic profit equals accounting profit minus:
A) explicit
Q32: Normal profit is a term for:
A) explicit
Q34: If a firm has total revenue of
Q189: The difference between a firm's total revenues
Q200: Which of the following is most likely
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents