In the Long Run

question 74

Multiple Choice

In the long run,

• A) all inputs can be varied.
• B) output is fixed.
• C) some inputs are variable and other inputs are fixed.
• D) all inputs are fixed.

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Definitions:

Goods

Physical items that are produced or purchased for sale by a business.

Deferred Expenses

Costs that have been incurred but not yet expensed in the income statement because they will benefit more than one accounting period.

Initial Cash Flow

The initial movement of money for an investment or project, often an outlay, which is considered when evaluating the potential financial returns.