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Which of the following statements is true?
a. economic profit equals accounting profit minus implicit costs
b. the short run is any period of time in which there is at least one fixed input
c. a fixed input is any resource for which the quantity cannot change during the period under consideration
d. in the long run there are no fixed costs
e. all of these.
What is the difference between the short-run framework and the long-run framework? Discuss how each relates to supply and demand.
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