ECONOMICS
TECHNOLOGY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the law of diminishing returns applies in the LR
|
|
|
all resources are variable in the LR
|
|
|
fixed costs are more important to decision making in the LR
|
|
|
in the SR all resources are fixed
|
Detailed explanation-1: -The main difference between short run and long run is that in the long run all resources are variable, while in the short at least one resources is fixed. Because in the short run, there have one fixed input (capital) with rest being variable.
Detailed explanation-2: -The main difference between long run and short run costs is that there are no fixed factors in the long run; there are both fixed and variable factors in the short run.
Detailed explanation-3: -What is the difference between long run and short run cost? In long run cost, all the factors of production are variable, whereas, in the short run cost, at least one factor of production is fixed.
Detailed explanation-4: -In economics, the long-run is a theoretical concept in which all markets are in equilibrium, and all prices and quantities have fully adjusted and are in equilibrium. The long-run contrasts with the short-run, in which there are some constraints and markets are not fully in equilibrium.
Detailed explanation-5: -in the long run, all resources are variable; in the short run, at least one resource is fixed.