What Is the Key Difference Between the Short-Run and Long-Run

question 5

Multiple Choice

What is the key difference between the short-run and long-run in terms of elasticity of supply?

• A)Fixed productive capacity
• B)Labor changes
• C)No changes can be made to capital or labor
• D)No difference

---

Definitions:

Option Contract

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Exercise Price

The cost at which an options contract's owner has the right to purchase or sell the underlying asset.

Time Value

The concept that money available now is worth more than the identical sum in the future due to its potential earning capacity.

January Call

In finance, might refer to a call option that expires in January, allowing investors to purchase stock at a specified price within a given time frame.