The Long Run Refers To

question 51

Multiple Choice

The long run refers to:

• A)a time period long enough for the prices of both output and inputs to adjust to changes in the economy.
• B)any time period of more than a year.
• C)a time period in which input prices can change but output prices have not had time to adjust.
• D)a time period in which output prices can change but input prices have not had time to adjust.
• E)a time period in which a firm's output doubles.

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Definitions:

Chart of Accounts

The Chart of Accounts is an organized list of all accounts in the general ledger of a company, used for recording transactions and building financial statements, categorized by assets, liabilities, equity, revenues, and expenses.

Merchandising Business

A type of business that purchases finished products and sells them to consumers, making a profit from the markup.

Service Business

A company that provides intangible products, such as expertise or labor, rather than physical goods.

Selling Expenses

Costs incurred directly and indirectly from selling products or services, such as advertising, commissions, and shipping costs.