A popular restaurant makes 2,000 of its famous soup dumplings each morning, and once it sells out, the chefs cannot make more until the next day. This restaurant is operating in the
A) market period.
B) short run.
C) medium run.
D) long run.

Question

Quizplus · Accepted Answer

The market period is a very short period in economics where the supply of a good is fixed and cannot be adjusted to meet changes in demand. In this scenario, the restaurant cannot adjust the supply of soup dumplings within the same day once they sell out, fitting the definition of operating in the market period.

A Popular Restaurant Makes 2,000 of Its Famous Soup Dumplings