Which of the following statements is not true about the short run and the long run?
A) The short run for a firm is today while the long run is next week.
B) These terms apply to the planning decisions of firms.
C) The firm is always operating in the short run.
D) In the short run, the firm can change the amount of variable inputs.

Question

Quizplus · Accepted Answer

The statement "The short run for a firm is today while the long run is next week" is not true as the short run and the long run are not determined by specific time frames but rather by the flexibility of inputs in the production process. The short run refers to a period where at least one input is fixed, while the long run is a period where all inputs are variable. Both terms apply to the planning decisions of firms, and the firm can change the amount of variable inputs in the short run.

Which of the Following Statements Is Not True About the Short