The Basic Difference Between the Short Run and the Long

question 28

Multiple Choice

The basic difference between the short run and the long run is that

• A)all costs are fixed in the short run, but all costs are variable in the long run.
• B)the law of diminishing returns applies in the long run but not in the short run.
• C)at least one resource is fixed in the short run, while all resources are variable in the long run.
• D)economies of scale may be present in the short run but not in the long run.

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Definitions:

Friendly Helper

An individual who provides support, assistance, or guidance to others in a congenial and non-threatening manner, often facilitating interpersonal relations.

Objective Thinker

A person who relies on factual information and rational analysis to form judgments and make decisions, avoiding biases and subjective influences.

Team Leaders

Individuals who are responsible for guiding, directing, and motivating members of a group to achieve its objectives.

Reward

Recognition or compensation given for achievement, service, or performance, serving as a motivator or incentive in various contexts.