Which of the following statements about the short run and long run is true?
A) The number of firms in the industry is fixed in the short run, but in the long run the number can change.
B) Free entry and exit of firms is possible in the short run, but entry and exit of firms is restricted in the long run.
C) The short-run average cost curves lies below the long-run average cost curves.
D) A firm can vary all of its factors of production in both the short run and the long run.
A
Economics
You might also like to view...
Suppose a firm produces pollution when it generates electricity. The cost of the pollution is called the
A) marginal cost. B) marginal private cost. C) marginal external cost. D) marginal social cost.
Economics
________: percent change in quantity supplied with respect to a percent change in the price of the product
Fill in the blank(s) with correct word
Economics