The Short Run Is the Amount of Time Such That

question 74

Multiple Choice

The short run is the amount of time such that:

• A)all inputs are variable.
• B)all inputs are fixed.
• C)some inputs are variable and some are fixed.
• D)the firm can maximize its profits.

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Definitions:

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest.

Service Company

A business that provides intangible products or services to customers, as opposed to selling physical goods.

Flexible Budget

An elastic budget that varies according to fluctuations in volume or operational activities.

Revenue

The total income generated by the sale of goods or services before any expenses are deducted.