Asked by
Brittany Thompson
on Oct 12, 2024
Verified
Which statement is true?
A) The firm is making a profit in the short run.
B) The firm is taking a loss in the short run.
C) The firm is breaking even in the long run.
D) The firm is making a profit in the long run.
E) The firm is taking a loss in the long run.
Short Run
A period in which at least one input (e.g., capital) is fixed and cannot be changed.
Long Run
A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to change.
- Explain the difference between short-run and long-run profit maximization and loss minimization.
Verified Answer
JH
Learning Objectives
- Explain the difference between short-run and long-run profit maximization and loss minimization.