Characteristics of the short run include:
A) at least one fixed input.
B) insufficient time for firms to enter or leave the industry in question.
C) the applicability of the law of diminishing returns.
D) all of the above.

Question

Quizplus · Accepted Answer

The characteristics of the short run include at least one fixed input, which is reflected in the production function. Additionally, the short run is characterized by insufficient time for firms to enter or leave the industry in question. This means that the number of firms operating in the industry is fixed. Finally, the applicability of the law of diminishing returns is another characteristic of the short run. So, all the given choices are correct.

Characteristics of the Short Run Include