The short run for Barbara's Bakery is defined as
A)one year
B)one month
C)the period of time during which all inputs are variable
D)the period of time during which at least one input is fixed
E)the time needed for a transaction to occur

Question

Quizplus · Accepted Answer

The short run is defined as the period of time during which at least one input is fixed. In the case of Barbara's Bakery, this could be fixed inputs such as the size of the bakery or the equipment it uses. One year or one month (choices A and B) are arbitrary timeframes and do not necessarily define the short run. Choice C is incorrect as all inputs are not variable in the short run. Choice E is unrelated to the concept of short run.

The Short Run for Barbara's Bakery Is Defined as