The short run is defined as the period during which at least two of the inputs are fixed.

Question: The short run is defined as the period during which at least two of the inputs are fixed.

False. The short run is defined as the period during which at least one input is fixed. This means that the firm cannot adjust the quantity of at least one input to produce its desired output.

Some examples of fixed inputs include:

• Plant and equipment
• Land
• Labor skills
• Management expertise

Other inputs, such as raw materials and labor hours, are variable. This means that the firm can adjust the quantity of these inputs to produce its desired output.

In the long run, all inputs are variable. This means that the firm can adjust the quantity of all inputs to produce its desired output.

The distinction between the short run and the long run is an important one in economics. It allows us to understand how firms make decisions about production and costs in different time frames.

For example, in the short run, the firm's plant and equipment are fixed. This means that the firm cannot produce at the most efficient level of output. In the long run, the firm can adjust its plant and equipment to produce at the most efficient level of output.

The variability of inputs also affects the way that costs are calculated. In the short run, the firm has both fixed costs and variable costs. Fixed costs are costs that do not change with the level of output, such as rent and depreciation. Variable costs are costs that do change with the level of output, such as labor and materials.

In the long run, all costs are variable. This is because the firm can adjust all of its inputs to produce its desired output. As a result, the firm's long-run cost curve is downward sloping at all levels of output.

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