In the short run, companies face _____, and in the long run, _____.
A)a changing number of competitors; the number of competitors is fixed
B)a fixed set of competitors; the number of competitors can change
C)variation in all costs; all costs are fixed
D)only fixed costs; all costs vary

Question

Quizplus · Accepted Answer

In the short run, companies operate with a fixed set of competitors because entering or exiting the market cannot happen instantly. In the long run, however, the number of competitors can change as new firms enter the market and existing firms may exit, reflecting the dynamic nature of market competition over time.

In the Short Run, Companies Face _____, and in the Long