Read the following statements - Assertion (A) and Reason (R):
Assertion (A): It is not advisable to define short run and long run in terms of say, days, months or years in the production process.
Reason (R): We define a period as long run or short run simply by looking at whether all the inputs can be varied or not.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Assertion (A): It is not advisable to define short run and long run in terms of say, days, months or years in the production process. — True. The long run of one process may be a few months, of another several years.
Reason (R): We define a period as long run or short run simply by looking at whether all the inputs can be varied or not. — True. If all inputs can be varied, it is the long run; if some input stays fixed, it is the short run.
Why R explains A?
The short run and the long run are not fixed lengths of time. They are decided by whether all inputs can be varied. That is why a calendar period such as days or months cannot define them.
NCERT (2026-27): “3.2 The Short Run and the Long Run … For any particular production process, long run generally refers to a longer time period than the short run. For different production processes, the long run periods may be different. It is not advisable to define short run and long run in terms of say, days, months or years. We define a period as long run or short run simply by looking at whether all the inputs can be varied or not.” |