The short run is a time period during which
A) some of the firm's resources are fixed.
B) all of the firm's resources are fixed.
C) all of the firm's resources are variable.
D) the fixed cost equals zero.
E) the firm cannot increase its output.

Question

Quizplus · Accepted Answer

The short run is a time period during which some of the firm's resources are fixed. In particular, the firm has at least one resource that it cannot change in the short run, such as its existing plant, equipment, or workforce. This means that the firm's production capacity is limited in the short run, and it cannot increase its output beyond a certain point without acquiring additional resources or improving its technology. The variable resources that the firm can adjust in the short run include materials, labor, and energy, but these adjustments can only increase output up to a certain limit, determined by the fixed resources.

The Short Run Is a Time Period During Which