The short run is a period of time during which all costs are fixed costs.

Short Run

A period of time in economics during which at least one input, such as plant size, is fixed and cannot be changed.

Fixed Costs

Expenses that do not change with the level of output produced, such as rent, salaries, and insurance.

Learn the correlation between the volume of production and the incurred variable costs.
Identify the distinctions between short-run and long-run perspectives regarding production and cost implications.

Verified Answer

Final Answer :

False

Explanation :

In the short run, some costs are fixed (do not change with the level of output), while other costs are variable (change with the level of output).

Learning Objectives

Learn the correlation between the volume of production and the incurred variable costs.
Identify the distinctions between short-run and long-run perspectives regarding production and cost implications.