Which of the following best applies to the distinction between the "long run" and the "short run"? The short run is a period of approximately 1-6 months while the long run is any time frame which is longer. In the short run, only new firms may enter, while in the long-run firms may either enter or exit the market. The rationing function of price is a short-run phenomenon whereas the guiding function is a long-run phenomenon. All of these statements are correct.
Which of the following best applies to the distinction between the "long run" and the "short run"? The short run is a period of approximately 1-6 months while the long run is any time frame which is longer. In the short run, only new firms may enter, while in the long-run firms may either enter or exit the market. The rationing function of price is a short-run phenomenon whereas the guiding function is a long-run phenomenon. All of these statements are correct.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following best applies to the distinction between the "long run" and the "short run"?
The short run is a period of approximately 1-6 months while the long run is any time frame which is longer.
In the short run, only new firms may enter, while in the long-run firms may either enter or exit the market.
The rationing function of
All of these statements are correct.
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