The difference between the short run and the long run is
A) economic profits are negative in the short run and positive in the long run.
B) economic and accounting profits are not equal in the short run but are equal in the long run.
C) that in the short run at least one factor of production cannot be varied while in the long run all factors of production can be varied.
D) the short run is a period less than a year while the long run is a period greater than a year.

Question

Quizplus · Accepted Answer

The short run is characterized by the presence of fixed inputs or factors of production, while the long run is characterized by the ability to vary all inputs or factors of production. The other options are incorrect: A is not necessarily true, and B and D do not capture the fundamental difference between the short and long run.

The Difference Between the Short Run and the Long Run