In Economics,the Long Run Is Considered to Be

question 58

Multiple Choice

In economics,the long run is considered to be

• A)The time period when all costs are variable.
• B)The time period when all costs are explicit.
• C)One year.
• D)More than two years.

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Definitions:

Vertical Analysis

A technique for analyzing financial statements where every item in the three primary account categories (assets, liabilities, and equity) on a balance sheet is expressed as a percentage of the overall account.

Ratio

A quantitative relationship between two numbers, showing how many times the first number contains the second or is contained within it.

Earnings Per Share

Earnings per share (EPS) is a financial ratio that divides the net earnings available to common shareholders by the average outstanding shares, indicating how much money shareholders would receive for every share owned.

Income Before Interest

Profits calculated after all expenses except interest expenses have been deducted from revenues.