The Short Run Is

question 72

Multiple Choice

The short run is

• A)a period of time in which at least one input cannot be varied.
• B)when firms are stuck with sunk costs, unlike the long run.
• C)treated the same way as the long run.
• D)a period of time when no inputs can be varied.

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Definitions:

Debit Capital Balance

Occurs when the sum of debits in a capital account exceeds the sum of credits, indicating the amount invested by the owners into the business.

Partnership Liquidation

The process of closing a partnership business, including selling off assets, paying off debts, and distributing the remaining assets to the partners.

Personal Assets

Assets owned by an individual as opposed to assets owned by businesses or corporations, including properties, account balances, and personal belongings.

Unlimited Liability

A legal structure in which the business owner's personal assets can be used to satisfy the business debts and liabilities.