In a perfectly competitive market, the type of decision a firm has to make is different in the short run than in the long run. Which of the following is an example of a perfectly competitive firm's long-run decision? Group of answer choices 1. how much to spend on advertising and sales promotion 2. what price to charge buyers for the product 3. whether or not to enter or exit an industry 4. the profit-maximizing level of output

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A:

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.