To economists, the main difference between the short-term and the long¬term is that:
A. In the short-term, all inputs are fixed, while in the long-term, all inputs are variable.
B. In the short-term, the firm varies all of its inputs to find the least cost combination of inputs.
C. In the short-term, at least one of the firm’s input levels is fixed.
D. In the long-term, the firm makes a constrained decision about how to use existing plant and equipment efficiently.
Answer:C
To economists, the main difference between the short-term and the long¬term is that:
A. In the short-term, all inputs are fixed, while in the long-term, all inputs are variable. B. In the short-term, the firm varies all of its inputs to find the least cost combination of inputs. C. In the short-term, at least one of the firm’s input levels is fixed. D. In the long-term, the firm makes a constrained decision about how to use existing plant and equipment efficiently.