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.
E)b and d

Question

Quizplus · Accepted Answer

In the short run, firms can adjust the quantity of variable inputs (like labor) to change output levels, but they cannot change fixed inputs (like capital). The other statements are incorrect because the definitions of short run and long run vary depending on the context and are not strictly defined by specific time periods, and there are indeed fixed costs in the short run which do not change with the level of output.

Which of the Following Statements Is True