The Period of Time Over Which All Factors of Production

question 38

Multiple Choice

The period of time over which all factors of production and technology are variable is known as the

• A)very-short run.
• B)short run.
• C)long run.
• D)very-long run.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a marketplace.

Average Variable Cost

The total variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Profit Maximization

The method used by a company to establish the price and quantity of production that generates the maximum profit.

Lowest Output

The minimum amount of goods or services produced by an entity under given conditions.