Asked by
Juliana Rivera
on Dec 11, 2024
Verified
Bart operates a lemonade stand in front of his house. His father works at the Springfield Nuclear Power Plant. Which of the following is most likely to be true?
A) The long run is the same for the power plant as it is for the lemonade stand.
B) The long run is longer for the power plant than it is for the lemonade stand.
C) The long run is shorter for the power plant than it is for the lemonade stand.
D) We cannot compare the long runs because these are different businesses.
E) It's impossible for the power plant short run to be shorter than the lemonade stand's long run.
Long Run
A period in which all factors of production and costs are variable, allowing firms to adjust fully to changes.
Lemonade Stand
A small business venture, often used as an example for basic business principles, where lemonade is sold, typically by younger entrepreneurs.
- Comprehend the principle of the short-term production phase and its impact on cost configurations.
Verified Answer
AA
Learning Objectives
- Comprehend the principle of the short-term production phase and its impact on cost configurations.