Which of the following statements best describes the economic short run?
A)It is a period of one year or less.
B)It is a period during which firms are free to vary all of their inputs.
C)It is a period during which at least one of the firm's inputs is fixed.
D)It is a period during which fixed inputs become variable inputs because of depreciation.

Question

Quizplus · Accepted Answer

The economic short run is a period during which at least one of the firm's inputs is fixed. This means that the firm cannot easily adjust the quantity of that input, resulting in a limited ability to respond to changes in demand or other economic conditions. The fixed input is typically physical capital, such as buildings or equipment, which cannot be quickly or easily replaced or modified.

Which of the Following Statements Best Describes the Economic Short