Sunk costs have ________.

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Sunk costs have ________.

should have no effect on output decisions

a moderate effect on output decisions

significant effect on output decisions

should have more effect than variable costs

Economists distinguish between the short run and the long run as follows:

There are increasing returns in the long run, but diminishing returns in the short run

Cost of resources is higher in the short run than it is in the long run

In the long run, all resources are variable; in the short run, at least one resource is fixed

In the short run, all resources are fixed; in the long run, all resources are variable

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