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.

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Definitions:

Cash Account

An account that records all transactions involving cash inflows and outflows, including receipts, disbursements, and balances.

Debited

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Cash Receipts

The collection of money, including coins, notes, cheques, and electronic transfers, by a business from transactions involving goods or services.

Cash Account

A financial account that records cash transactions, including receipts and payments of cash.