To economists, the main difference between the short run and the long run is that:
A. fixed costs are more important to decision making in the long run than they are in the short run.
B. the law of diminishing returns applies in the long run, but not in the short run.
C. in the long run all resources are variable, while in the short run at least one resource is fixed.
D. in the short run all resources are fixed, while in the long run all resources are variable.
Answer: C
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A) high growth rates; low growth rates B) low growth rates; high growth rates C) positive growth rates; no growth D) negative growth rates; positive growth rates
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Indicate whether the statement is true or false