Which of the following statements is TRUE regarding short-run and long-run production functions?Question 7Answera.The long run is a period during which all inputs are variable.b.The long run is a period during which at least one input is fixed.c.The short run allows for greater flexibility in adjusting production levels.d.The long run assumes that technology is constant.

The long-run production function is characterized by:Question 1Answera.All inputs being variable.b.Some inputs being fixed and others being variable.c.All inputs being fixed.d.Rapid changes in technology.

Item2Item 2To economists the main difference between "the short run" and "the long run" is that:Multiple Choicethe law of diminishing returns applies in the long run, but not in the short run.in the long run all factors of production are variable, while in the short run at least one factor of production is fixed.fixed costs are more important to decision making in the long run than they are in the short run.in the short run all factors of production are fixed, while in the long run all factors of production are variable.

The short-run is:A.the period of time in which a firm can't change its use of fixed inputs.B.up to three years.C.the period of time in which the production level can't be changed.D.the period of time in which a firm can vary its rate of output.E.a year or less.

In the short run, a production function typically assumes that:Question 9Answera.Some inputs are fixed, while others are variable.b.All inputs are variable.c.All inputs are fixed.d.There is no production.

What is the difference between a firm's short-run and long-run costs?a. Short-run costs are always lower than long-run costs.b. In the short run, some costs are fixed, while in the long run, all costs are variable. c. In the short run, all costs are variable, while in the long run, some costs are fixed.d. Short-run costs are always higher than long-run costs.