To economists,the main difference between "the short run" and "the long run" is that:
A)the law of diminishing marginal 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
E)in the short run all resources are variable, while in the long run all resources are fixed

Question

Quizplus · Accepted Answer

The main difference between the short run and the long run is that in the short run, at least one resource is fixed, while in the long run, all resources are variable. This means that in the short run, firms can only adjust their production levels by changing the variable inputs, while the fixed input remains fixed. In the long run, firms can adjust their production levels by changing the level of all inputs. This difference between the short and long run has important implications for production and pricing decisions.

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