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 short run and the long run are not specific time periods, but rather conceptual frameworks for analyzing a firm's decision-making. The short run is a period during which at least one input is fixed, while the long run is a period during which all inputs can be varied. Therefore, choice A is not true as the short run is not limited to just one day.

Which of the Following Statements Is NOT True About the Short