How Long Does It Take a Firm to Go from the Short

question 139

Multiple Choice

How long does it take a firm to go from the short run to the long run?

• A)six months
• B)one year
• C)two years
• D)It depends on the nature of the firm.

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Definitions:

Molding Machine

A machine used in manufacturing to shape liquid or pliable raw material using a rigid frame called a mold.

Straight-line Method

A method of calculating depreciation or amortization by evenly spreading the cost over the useful life of the asset.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Residual Value

The estimated value of an asset at the end of its useful life, often used in calculating depreciation.