Which of the Following Statements Is Correct

question 33

Multiple Choice

Which of the following statements is correct?

• A)A firm can operate in either the short run or the long run.
• B)While a firm can plan as if it is in the long run,it can operate only in the short run.
• C)The short run is a period of time of less than six months.
• D)The short run is a period of time of less than one year.

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Definitions:

Nominal Income

The amount of money earned in current dollars, without adjustment for inflation, affecting purchasing power over time.

Real Income

Income of individuals or nations after adjusting for inflation, reflecting the actual purchasing power.

Anticipated

Expected or foreseen based on current trends or available information.

Borrowers

Individuals or entities that receive funds from a lender with the agreement to repay the borrowed amount plus interest.