The feature that distinguishes short-run from the long-run is the*
length of time it takes to produce 1 unit.
existence of fixed costs.
amount of variable resources used to produce 1 unit.
the amount of profit the firm can expect to earn.
The short-run is*
less than a year.
when a firm is unable to change some of its inputs.
when a firm is unable to change output.
when a firm is unable to change its price.
The production function tells the firm*
which input combination has the lowest total cost.
which input combination produces a given output at the lowest possible cost.
the maximum output that can be produced from a given amount of inputs.
which output is the most profitable.
In the short run*
all costs are variable.
all inputs are fixed
there may be fixed and variable inputs.
all production decisions must be made on a daily basis.
The law of diminishing marginal returns says that as units of labor are added to the production of an output when all other inputs are fixed, eventually*
total product declines
marginal product declines
total cost rises.
marginal costs decline.
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