To an Economist, for a Firm to Be Operating in the Short

question 43

Multiple Choice

To an economist, for a firm to be operating in the short run,

• A) all inputs are variable.
• B) no more than one input can be fixed.
• C) all inputs are fixed.
• D) it must operate with its existing plant and equipment.
• E) at least one input is fixed.

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Definitions:

Cash Sale

A transaction in which goods or services are exchanged for immediate payment in cash or its equivalent.

Sale of Receivables

Sale of Receivables involves a company selling its outstanding invoices to a third party to receive immediate payment, typically at a discount.

Financial Difficulty

A situation where an individual or organization struggles to meet financial obligations.

Operating Needs

The essential requirements necessary for a business to maintain and grow its operations, including working capital, equipment, and inventory.