Which statement is true?
A)Going out of business is a short run option.
B)Operating or shutting down are long run options.
C)Going out of business or not going out of business are long run options.

Question

Quizplus · Accepted Answer

In the long run, a firm can decide whether to continue operating or to exit the market entirely, making "going out of business or not going out of business" long run options. This is because, in the long run, all inputs are variable, and firms can make decisions about entering or exiting an industry based on profitability.

Which Statement Is True