Which of the following is correct?
A) The short run for a firm can be longer than the long run for the same firm.
B) The short run is the same for all firms.
C) The long run is the time frame in which the quantities of all resources can be varied.
D) The long run is the time frame in which all resources are fixed.
E) The long run does not exist for some firms.

Question

Quizplus · Accepted Answer

The long run is the time frame in which firms can vary the quantities of all their resources, while in the short run, at least one resource is fixed. Therefore, option A is incorrect, as it implies the short run can be longer than the long run, which is not possible. Option B is also incorrect, as the short run can differ for each firm depending on which resource is fixed, such as capital or labor. Option D is incorrect because the long run refers to a time when all resources can be varied. Finally, option E is incorrect because the long run applies to all firms in theory; however, it may be challenging for some firms to reach the long run for practical reasons.

Which of the Following Is Correct