The Long Run Is a Period of Time, or a Time

question 212

Multiple Choice

The long run is a period of time, or a time frame, in which

• A)all resources are fixed in quantity.
• B)the level of output is variable.
• C)the amount of all resources can be varied.
• D)the capacity of the production plant is fixed.

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Definitions:

Return-On-Equity Ratio

A financial ratio that measures a company's ability to generate profits from its shareholders' equity.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a profit or loss.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholder's equity at a specific point in time.

Investing Activities

Investing activities involve the purchase and sale of long-term assets and other investments, not considered as cash equivalents by a company.