Choose the Correct Statement

question 35

Multiple Choice

Choose the correct statement.

• A)The long run is a period of time in which the quantity of at least one input is fixed.
• B)The short run is a period of time in which the firm has sufficient time to change all its inputs.
• C)The long run is a time frame that lasts for 10 years.
• D)In the short run,the firm's plant is fixed.
• E)A firm always has plenty of time to make decisions about changing its inputs no matter if it is in a short run or long run position.

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Definitions:

Unit Variable Costs

The costs that vary directly with the volume of production, such as materials and labor.

Unit Selling Price

The amount customers pay for one unit of a product.

Break-even Point

The point at which total costs and total revenue are equal, meaning the business is neither making a profit nor a loss.

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent and salaries.