One Assumption That Distinguishes Short-Run Cost Analysis from Long-Run Cost

question 80

Multiple Choice

One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximising firm is that, in the short run:

• A)output is not variable
• B)the size of the factory is fixed
• C)the number of workers used to produce the firm's product is fixed
• D)there are no fixed costs

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Definitions:

Direct Address

An unusual presentation of dialogue in which a character in a film breaks the so-called fourth wall (separating the fictional characters from the film spectator) in order to speak directly to the movie audience.

Fiction Film

A movie that tells a scripted, fictional narrative with actors, as opposed to documentaries, which depict real events and people.

Documentary

A term coined by John Grierson in the 1920s to describe formally structured nonfiction films. Documentary has come to refer to any film that is not by design or definition fictional.

Electronic Cinema

The distribution or projection of movies using digital technology instead of traditional film reels.