What's True About Both the Short-Run and Long-Run in Terms

question 15

Multiple Choice

What's true about both the short-run and long-run in terms of production and cost analysis?

• A) In the short-run,one or more of the resources are fixed
• B) In the long-run,all the factors are variable
• C) The time horizon determines whether or not an input variable is fixed or not
• D) The law of diminishing returns is based in part on some factors of production being fixed,as they are in the short run.
• E) All of the above

---

Definitions:

Level Material Use

A strategy in production planning that aims for a constant rate of material use, minimizing fluctuations in inventory levels.

Repetitive Manufacturing

A production method where the same products or components are produced in a continuous flow or on a repetitive basis.

Intermittent Process

Refers to a production system where the flow of materials is irregular, handling a variety of products or services.

First Come

A principle where services or resources are allocated to recipients in the order of their arrival or request.