In considering the behavior of firms in the marketplace, we differentiate betwee

Question

In considering the behavior of firms in the marketplace, we differentiate between the short rurn and the long run. The distinction between these two time horizons is that in the short run all inputs are fixed whereas in the long run no inputs are fixed in the short run all inputs are variable whereas in the long run all inputs are fixed in the short run at least one input is fixed whereas in the long run all inputs are fixed O in the short run at least one input is fixed whereas in the long run no inputs are fixed

Explanation / Answer

Answer
Option Fourth
The short run is that where one of the input is fixed so the firm has diminishing returns but in long run, all inputs are variable so it has the economics of scale or diseconomies of scale.
the long run and short run depend on the type of industry, it is not same for all industry it might be 1 day for some and 10 years for some.

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