In the Short Run

question 169

Multiple Choice

In the short run

• A) existing firms do NOT face limits imposed by a fixed input.
• B) all firms have costs that they must bear regardless of their output.
• C) new firms can enter an industry.
• D) existing firms can exit an industry.

---

Definitions:

Bailor

The party in a bailment who temporarily transfers possession but not ownership of a property to another party, the bailee.

Leasehold

An interest in a property that allows the holder (lessee) to use and occupy the land or premises for a specified period, under certain conditions, but does not provide ownership.

Life Estates

A legal right to use and benefit from a property for the duration of an individual's lifetime.

Exclusive Possession

The right of an individual or entity to the use and control of property without interference from others, often associated with lease agreements.