The Main Difference Between the Short Run and the Long

question 214

Multiple Choice

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

• A)firms earn zero profits in the long run.
• B)the long run always refers to a time period of one year or longer.
• C)in the short run, some inputs are fixed and some are variable.
• D)in the long run, all inputs are fixed.

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Definitions:

Air Loss Rate

The speed at which air escapes from a pressurized system, often measured to assess the integrity of tires, pipes, or containers.

Cutout Pressure

The maximum pressure at which a compressor stops or cuts out, designed to prevent over-pressurization.

Governor Cut-in

The point at which a governor begins to limit or control the speed of an engine, preventing it from exceeding a certain speed.

Governor Cut-out

A device or system that limits the maximum speed of an engine or machine by cutting out fuel supply or otherwise preventing acceleration beyond a preset limit.