In the short run, firms are unable to enter or exit the industry due to various barriers such as capital requirements, regulatory approvals, and the time it takes to establish or dissolve a business. This period is characterized by fixed capacity and the number of firms in the industry.

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In the Short Run

Question 22

Multiple Choice

In the short run

A) firms can enter the industry but no firm can exit.
B) firms can exit the industry but no firm can enter.
C) firms can enter and exit the industry.
D) no firm can enter or exit the industry.

Correct Answer: