The Short Run Is Not the Same Length of Time

question 148

Multiple Choice

The short run is not the same length of time for all firms and industries because:

• A) entrepreneurs have different tastes and preferences.
• B) the average product of labor varies across industries.
• C) the life span of capital and the extent of capital specialization will vary across firms and industries.
• D) The marginal product of capital begins to diminish at different levels of capital utilization across firms.

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Definitions:

Poisson Distribution

A statistical distribution showing the probability of a given number of events occurring in a fixed interval of time or space.

Discrete Probability Distribution

A mathematical function that represents the probabilities of occurrence of different possible outcomes for a discrete random variable.

Skewed To The Right

Describes a distribution of data where the tail on the right side of the histogram is longer or fatter than the left side, indicating that most of the data are concentrated to the left.

Symmetrical

A shape or distribution that is mirrored equally on both sides of a central axis.