A Difference Between the Short Run and the Long Run

question 24

Multiple Choice

A difference between the short run and the long run is that a firm in the short run:

• A)faces an unconstrained cost minimization problem, whereas the firm is constrained in the long run.
• B)faces a constrained cost minimization problem, whereas the firm is unconstrained in the long run.
• C)faces a constrained cost minimization problem in both the short run and the long run.
• D)faces an unconstrained cost minimization problem in both the short run and the long run.

---

Definitions:

Excessive Amounts

Quantities that surpass what is normal, necessary, or reasonable, often leading to negative consequences or inefficiency.

Entire Organization

Refers to encompassing all departments, employees, and processes in a holistic view of the organization.

Conceptual Perspective

An approach that emphasizes understanding concepts and theories behind observable phenomena, focusing on the big picture rather than specific details.

Consensus

General agreement among all members of a group or the process of reaching such an agreement.