The Difference Between the Short Run and the Long Run

question 130

Multiple Choice

The difference between the short run and the long run is

• A) economic profits are negative in the short run and positive in the long run.
• B) economic and accounting profits are not equal in the short run but are equal in the long run.
• C) that in the short run at least one factor of production cannot be varied while in the long run all factors of production can be varied.
• D) the short run is a period less than a year while the long run is a period greater than a year.

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Definitions:

Product Life Cycle

The sequence of stages from introduction to growth, maturity, and decline through which a product goes over its lifespan.

Retirement

The act of leaving one's job and ceasing to work, typically upon reaching a certain age or due to health reasons.

Cost Minimization

A strategy aiming to reduce expenses as much as possible while maintaining desired levels of production, quality, and service.

Product Life Cycle

The stages through which a product goes, from its inception and introduction to the market, through growth and maturity, and eventually to decline.