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Which of the Following Probably Has the Shortest Long Run

question 115

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Which of the following probably has the shortest long run?


Definitions:

Marginal Cost

The price of manufacturing an additional unit of a product or service.

Shutdown

A short-term decision by a company to cease operations due to unfavorable market conditions, aiming to minimize losses.

Short-Run Supply Curve

A graph that shows the relationship between the price of a good and the quantity of that good supplied by producers over a short period, where some inputs are fixed.

Long-Run Supply Curve

A graphical representation showing how the quantity supplied of a good or service varies with price over a long period, when all inputs can be varied.

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