The Key Difference Between Supply in the Short Run and Supply

question 145

Multiple Choice

The key difference between supply in the short run and supply in the long run is the assumption that firms:

• A)are able to enter and exit the market in the short run.
• B)are able to enter and exit the market in the long run.
• C)will not collude in the short run.
• D)will have a total supply that is constant in the long run.

---

Definitions:

Economic Loss

Financial damage suffered by a person or entity, often due to breach of contract, negligence, or external market factors.

Insurance

A contract whereby one party pays premiums to another party who undertakes to pay compensation for losses resulting from risks or perils specified in the contract.

Insured

A person or entity covered under an insurance policy, receiving protection against specified losses or damages in exchange for payment of a premium.

Fee

A charge or payment for a service, often imposed by a professional or official body.