The Long Run Is Defined as the Time Period in Which

question 100

Multiple Choice

The long run is defined as the time period in which

• A) the firm can vary only one input.
• B) the firm can make positive economic profits.
• C) all factors of production can be altered.
• D) the firm can alter its rate of production.

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Definitions:

Contribution Margin

The difference between the sales revenue of a product and the variable costs associated with its production and sales.

Unit Contribution Margin

The amount that the sale of one unit contributes towards covering fixed costs, calculated as the sales price per unit minus variable costs per unit.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Advertising Campaign

A series of advertisement messages that share a single idea and theme intended to achieve specific business objectives.