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Short run costs and long run costs are treated separately because in the long run:
ACosts are always fixed
BCosts behave differently
CCosts cannot be measured
DCosts are always zero
Answer & Solution
Correct answer: B. Costs behave differently
1. The time horizon changes which inputs a firm can adjust.
2. Short run costs are different from long run costs.
3. The origins of cost are discussed in both the short and long run.
4. In the long run every input can be varied, so nothing stays fixed.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 7 'Production, Costs and Industry Structure', sections 7.1-7.4_
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