Which of the Following Is Correct

question 153

Multiple Choice

Which of the following is correct?

• A) The short run for a firm can be longer than the long run for the same firm.
• B) The short run is the same for all firms.
• C) The long run is the time frame in which the quantities of all resources can be varied.
• D) The long run is the time frame in which all resources are fixed.
• E) The long run does not exist for some firms.

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Definitions:

Bond Discount Amortization

This is the process of gradually expensing the difference between a bond's face value and its purchase price over its life, reflecting an increase in the bond's book value.

Straight-Line Amortization

A method of uniformly reducing the book value of an intangible asset over its useful life.

Interest Expense

The expenditure faced by a company for financing through borrowed resources during a defined time.

Book Value

The value of a fixed asset, as recorded on a balance sheet, which represents its historical cost minus accumulated depreciation.