The Short Run Is a Period of Time in Which

question 87

Multiple Choice

The short run is a period of time in which

• A) the quantities used of all factors of production are fixed.
• B) the quantity used of at least one factor of production is fixed.
• C) factor of production prices are fixed.
• D) output prices are fixed.

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Definitions:

Comparative Advantage

The potential of an individual, enterprise, or country to offer a product or service with a more favorable opportunity cost than that available to its competitors.

Financial Cost

The total expenses incurred by a company in borrowing money, including interest payments, fees, and other charges.

Bowed-Out

Describes a production possibilities curve that is concave from the origin, indicating increasing opportunity costs.

Opportunity Costs

The cost associated with an alternative that is foregone when a particular decision or action is taken.