The Short Run

question 9

Multiple Choice

The short run:

• A) is typically defined by the process cycle of the particular firm.
• B) is defined by the presence of a fixed cost for a firm.
• C) is generally less than a year.
• D) All of these are true.

---

Definitions:

Principle Homeostasis

The regulatory principle that organisms maintain a stable internal environment despite external changes.

Hierarchy Needs

A theory in psychology, proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, which form a hierarchy.

Self-actualization

The realisation or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in a priority, culminating in self-actualization.