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Short-Run And Long-Run Costs - SS2 Economics Past Questions and Answers - page 1

1

In the short run, which type of costs cannot be altered?

A

 Fixed costs

B

Variable costs

 

correct option: a
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2

In the long run, which type of costs become variable costs?

A

Fixed costs

 

B

Variable costs

correct option: a
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3

Which type of cost exists in both the short run and the long run?

A

 Fixed costs

 

B

Variable costs

correct option: b
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4

Which time horizon has all costs as variable costs?

A

Short run

 

B

Long run

correct option: b
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5

How long is the short run?

 

The short run is a period in which some inputs in the production process are fixed, typically ranging from a few months to a year.

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6

How long is the long run?

 

The long run is a period in which all inputs in the production process can be adjusted, typically ranging from several years to a decade or more.

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