Why Is the Short Run NOT the Same Length of Time

question 94

Multiple Choice

Why is the short run NOT the same length of time for all firms and industries?

• A) because the marginal product of capital begins to diminish at different levels of capital utilization across firms
• B) because the average product of labour varies across industries
• C) because the life span of capital and the extent of capital specialization will vary across firms and industries
• D) because entrepreneurs have different tastes and preferences

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Definitions:

Recentering

The process of adjusting or shifting focus, priorities, or resources back towards a central or core objective or value.

Codetermination

Codetermination is a practice where workers participate in the management of a company, often through representation on its board, aiming to incorporate employee interests in decision-making processes.

Dejobbing

Dejobbing refers to the process of restructuring or redesigning work in a way that traditional job definitions and classifications become less relevant, often in response to changes in technology or market demands.

Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.