The main difference between the short run and the long run is that
A)firms earn losses in the long run, but not in the short run.
B)the long run always refers to a time period of one year or longer.
C)in the long run, only one input can be fixed.
D)in the short run, one or more inputs are fixed.
E)none of the above

Question

Quizplus · Accepted Answer

In the short run, at least one input (such as capital) is fixed, meaning it cannot be changed. In contrast, in the long run, all inputs can be varied by the firm. This distinction allows firms to adjust their production processes more flexibly in the long run than in the short run.

The Main Difference Between the Short Run and the Long