In the Short Run, the Firm's Network Is _____ While

question 37

Multiple Choice

In the short run, the firm's network is _____ while in the long run it is _____.

• A) fixed; variable
• B) adoptable; reversible
• C) variable; reversible
• D) reversible; fixed

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Definitions:

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Short Run

A time period in which at least one input is fixed and cannot be changed by the firm, affecting its production decisions.

Purely Competitive Market

Another term for a perfectly competitive market, emphasizing its features like a large number of small firms and identical products.

Marginal Revenue

The increased earnings resulting from the sale of one extra unit of a good or service.