To Economists, the Main Difference Between the Short Run and the Long

question 126

Multiple Choice

To economists, the main difference between the short run and the long run is that

• A)the law of diminishing returns applies in the long run, but not in the short run.
• B)in the long run all resources are variable, while in the short run at least one resource is fixed.
• C)fixed costs are more important to decision making in the long run than they are in the short run.
• D)in the short run all resources are fixed, while in the long run all resources are variable.

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Definitions:

Glass Windows

Transparent panes made from silica-based materials, used in buildings and vehicles to admit light while offering protection from weather elements.

Wallboard

A construction material made from gypsum plaster between two layers of paper, used for making walls and ceilings.

Interior Walls

Walls located within a building or structure, dividing spaces into rooms or sections.

Effervesces

Reacts with acids to release carbon dioxide gas, often indicating the presence of carbonate minerals like calcite.