The Basic Difference Between the Short Run and the Long

question 28

Multiple Choice

The basic difference between the short run and the long run is that

• A)all costs are fixed in the short run, but all costs are variable in the long run.
• B)the law of diminishing returns applies in the long run but not in the short run.
• C)at least one resource is fixed in the short run, while all resources are variable in the long run.
• D)economies of scale may be present in the short run but not in the long run.