One Assumption That Distinguishes Short-Run Cost Analysis from Long-Run Cost

question 594

Multiple Choice

One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in the short run,

• A)output is not variable.
• B)the number of workers used to produce the firm's product is fixed.
• C)the size of the factory is fixed.
• D)there are no fixed costs.

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Definitions:

Environment

The surrounding conditions and influences that affect the growth, development, or existence of living things.

Gene-environment Correlation

A concept in behavioral genetics that suggests individuals’ genetic makeup influences their exposure to certain environments, which in turn affects their traits or behaviors.

Heredity

The genetic transmission of characteristics from parents to offspring, influencing various aspects of physical and psychological traits.

Surroundings

The environmental context or setting in which an individual or object is situated, influencing their experience and behavior.