Question

What is the difference in the short run and the long​ run? In the short​ run, A. at least one of the​ firm's inputs is​ fixed, while in the long​ run, at least one of the​ firm's inputs is variable. B. at least one of the​ firm's inputs is​ fixed, while in the long​ run, the firm is either able to vary all its​ inputs, adopt new​ technology, or change the size of its physical plant. C. at least one of the​ firm's inputs is​ fixed, while in the long​ run, the firm is able to vary all its​ inputs, adopt new​ technology, and change the size of its physical plant. D. all of the​ firm's inputs are​ fixed, while in the long​ run, the firm is able to vary all its​ inputs, adopt new​ technology, and change the size of its physical plant. E. all of the​ firm's inputs are​ variable, while in the long​ run, the firm is able to vary all its inputs as well as adopt new technology and change the size of its physical plant.

Answer 1

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:

short run:

A period of short run is characterized in the economic when there is one factor that remains fixed ( for example- land) but all other factors of production in the business may vary (for example labor or raw materials). In such period, the factors of production have not actually adjusted flexibly to the activities and economic behavior of any business.

In the short run, the business can increase the amount of labor or raw materials whereas fixed factor of production i.e. land or technology cannot be expanded in short run.

long run:

In the long run, however, there are no factors of production which are fixed in nature rather all are variable in nature. In long run business can hire more amount of labor, it can also buy more land to expand its scale of production and it can also adopt updated technology in the longer period. In long run, the business gets fully adjusted to its operations and economic behavior.

Difference:

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.

The amount of time that separates the short run from the long run is not same for all the firm rather it differs for all the business depending on the flexibility of businesses to adapt to their operations as well as to the dynamic economic behavior of the industry in which they are operating.

so option (c) is correct

ie

C. at least one of the​ firm's inputs is​ fixed, while in the long​ run, the firm is able to vary all its​ inputs, adopt new​ technology, and change the size of its physical plant.