The Chief Difference Between the Long- and Short-Run Costs Facing

question 72

Multiple Choice

The chief difference between the long- and short-run costs facing a firm is that:

• A) there are no variable factors in the long run.
• B) there are no fixed factors in the long run.
• C) there are no fixed costs in the short run.
• D) the firm can't adjust its factor mix in the long run.

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Definitions:

Evaluate

To find out the value associated with an expression.

Round

To approximate a numerical value to a specified degree of accuracy, often to the nearest whole number or decimal place.

Simplify

Making an algebraic expression easier to understand by combining like terms or applying mathematical operations.

Radical

A mathematical symbol (√) used to denote the square root or nth root of a number or expression.