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:

Likelihood

The probability of a set of observations given a particular statistical model.

Joint Probability

The likelihood of two or more events occurring simultaneously given the intersection of the events.

Intersection

The point or set of points where two or more mathematical sets or geometrical shapes meet or overlap.

Union of Events

A set operation that combines all the outcomes of two or more events, with no duplicate outcomes.