Which of the following most accurately describes the short-run period?
A) It is a period of time in which the existing firms in the industry do not have sufficient time to adjust the quantity of any inputs that they employ.
B) It is a period of time in which new entrants have sufficient time to build factories and enter the industry.
C) It is a period of time in which the existing firms in the industry do not have sufficient time to adjust their current rate of output.
D) It is a period of time in which the existing firms in the market do not have sufficient time to increase the size of their existing plants or build new factories.

Question

Quizplus · Accepted Answer

In the short-run period, firms cannot change their fixed inputs, such as the size of their plants, but can adjust variable inputs to change output levels.

Which of the Following Most Accurately Describes the Short-Run Period