Which of the following statements is true?
A)The short run is always somewhere between six and twelve months.
B)In the short run, changes in output can only be brought about by a change in the quantity of variable inputs.
C)The long run is any period of time over one year.
D)In the short run, there are variable costs but no fixed costs.

Question

Quizplus · Accepted Answer

In the short run, changes in output can only be brought about by a change in the quantity of variable inputs. The length of the short run can vary, and it is defined as a period of time in which at least one factor of production (usually capital) is fixed, while others (usually labor) are variable. The long run is a period of time in which all factors of production are variable. Variable costs and fixed costs exist in both the short run and long run.

Which of the Following Statements Is True