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A Difference Between the Short Run and the Long Run

question 50

True/False

A difference between the short run and the long run is that a firm in the short run faces an unconstrained cost minimization problem, whereas the firm is constrained in the long run.


Definitions:

Withdraw

To remove funds from an account, or to take back or remove an offer, statement, or participation.

Compounded Annually

Interest calculated on the principal and previously accumulated interest once a year.

Compounded Monthly

Interest on an investment is calculated and added to the principal balance every month.

Annual Contributions

Regular payments made into a retirement account, investment fund, or savings plan on a yearly basis.

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