Question

Which of the following statements is false? Multiple Choice The short run refers to a period of less than one year. In the long run, all inputs can vary in quantity. Firms may continue operating at a loss in the short run. In the long run, firms would not continue operating at a loss.

Answer 1

Answer:

The short run refers to a period of less than one year.

Explanation:

The statements is false that the short run refers to a period of less than one year.

The short run, long run and very long run are different time periods in economics.

Short run – where one factor of production (e.g. capital) is fixed.

long run – Where all factors of production are variable,

Unlike in accounting where operating period refer to a period of one year, there is no hard and fast definition as to what is classified as "long" or "short" and mostly relies on the economic perspective being taken.