Which of the Following Represents the Key Difference Between the Short

question 65

Multiple Choice

Which of the following represents the key difference between the short run and the long run?

• A) In the long run, the firm makes commitments to a certain type of production technology which are represented as fixed costs in the long run. For example, they have signed a lease on a particular production facility. These fixed costs do not exist in the short run.
• B) In the short run, the firm makes commitments to a certain type of production technology, which are represented as fixed costs in the short run. For example, they have signed a lease on a particular production facility. These fixed costs do not exist in the long run.
• C) The short run refers to less than two years and the long run is over two years.
• D) In the short run, all costs are fixed but in the long run, capital costs are variable.

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Definitions:

High Compensation

Refers to the offering of a salary and benefits package that is significantly above the market rate to attract and retain top talent.

Affirmative Action Programs

Policies and procedures designed to combat discrimination and promote diversity in the workplace or educational settings by giving preferential treatment to traditionally marginalized groups.

Minority Applicants

Individuals from demographic groups that are underrepresented in a particular area or field, applying for positions or opportunities.

Equally Qualified Employees

Workers who have the same level of skills, experience, and qualifications, making them similarly suitable for a particular job or task.