What is the difference between the short run and the long run?
Please provide the best answer for the statement.
The short run is a period too brief for a firm to alter its plant capacity, but it can still change the degree to which the fixed plant is used. The long run is a period in which the firm can change all resources including the size and number of plants. It is often stated that the short run is a “fixed-plant” period and the long run is a “variable plant” period.
You might also like to view...
Refer to Figure 15.2. The economy is at full employment and the unemployment rate is at the natural rate at point
A) a. B) b. C) c D) d.
Refer to the scenario above. If the individual places his bet on four pockets, his likelihood of winning is:
A) 1%. B) 4%. C) 8%. D) 10%.
Assume you set up a sole proprietorship and your lawyer tells you that as the owner, you could stand to lose your personal wealth if the business goes bankrupt. This means a sole proprietorship
A) is not a good type of business to set up. B) faces limited liability. C) faces unlimited liability. D) has little chance of succeeding.
If movies are an inferior good, movie attendance will rise when consumer incomes fall
a. True b. False Indicate whether the statement is true or false