The Time Period During Which a Firm's Capital Is Fixed

question 159

Multiple Choice

The time period during which a firm's capital is fixed but its labor is variable is called

• A) the planning horizon.
• B) the short run.
• C) the long run.
• D) the very long run.

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Definitions:

Redistribution

A mode of exchange in which goods flow into a central place, where they are sorted, counted, and reallocated.

No Money

A condition or concept where monetary exchange is absent, and goods or services are often traded directly or provided without a need for currency.

Direct Exchange

A transaction where goods or services are traded directly between two parties without the use of money or an intermediary.

Trade Good

A commodity that is produced or manufactured for sale.