The Long Run Is Distinguished from the Short Run Because

question 203

Multiple Choice

The long run is distinguished from the short run because only in the long run

• A) output prices can vary.
• B) factor of production prices can vary.
• C) the quantities of all factors of production can be varied.
• D) the firm no longer maximizes its profit.

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Definitions:

Export

The sale of goods or services from one country to another.

Production Possibilities Curves

A graphical representation that shows the maximum possible output combinations of two goods that can be produced with available resources and technology.

Specialization And Trade

An economic concept where individuals or entities focus on producing a limited scope of goods or services to trade for other goods or services rather than trying to produce everything themselves.

Law Of Increasing Opportunity

The principle that the opportunity cost of producing a good increases as more of that good is produced, reflecting trade-offs in resource allocation.