Question

Given below are two statements:
Statement I: In the short run some factors are fixed while in the long run they become varibale.
Statement II: The payment to an input which is in fixed supply in the short run is called quasi rent.
In the light of the above statements, choose the correct answer from the options given below

• A. Both Statement I and Statement II are true
• B. Both Statement I and Statement II are false
• C. Statement I is true but Statement II is false
• D. Statement I is false but Statement II is true

Answer 1

Answer: (A)

Both Statement I and Statement II are true

Answer 2

The correct option is (A):Both Statement I and Statement II are true