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

Question

Quizplus · Accepted Answer

In the short run, at least one resource (usually capital) is fixed, while in the long run all resources are variable. The law of diminishing returns applies in both the short run and the long run. Fixed costs are important to decision making in both the short run and the long run, but their relative importance may vary depending on the specific industry and market conditions.

To Economists,the Main Differences Between "The Short Run" and "The