The main difference between the short run and the long run is that: in the short

Question

The main difference between the short run and the long run is that:

in the short run all inputs are fixed, while in the long run all inputs are variable.

in the short run the firm varies all of its inputs to find the least-cost combination of inputs.

in the short run, at least one of the firm's input levels is fixed.

in the long run, the firm is making a constrained decision about how to use existing plant and equipment efficiently.

in the short run all inputs are fixed, while in the long run all inputs are variable.

in the short run the firm varies all of its inputs to find the least-cost combination of inputs.

in the short run, at least one of the firm's input levels is fixed.

in the long run, the firm is making a constrained decision about how to use existing plant and equipment efficiently.

Explanation / Answer

There are two important time frames in economics- short run and long run.

The main difference between the short run and the long run is that: in the short run, at least one of the firm's input levels is fixed. While in the long run all the inputs are variable because with longer time frame it is easier to change input usage of any factor production which is not possible in the short run.

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