The Main Difference Between the Short Run and the Long

question 95

Multiple Choice

The main difference between the short run and the long run is that:

• A)in the short run all inputs are fixed, while in the long run all inputs are variable.
• B)in the short run the firm varies all of its inputs to find the least-cost combination of inputs.
• C)in the short run, at least one of the firm's input levels is fixed.
• D)in the long run, the firm is making a constrained decision about how to use existing plant and equipment efficiently.

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Definitions:

Component Parts

Individual pieces or materials that are assembled or used together to create a finished product or to complete a larger assembly.