With regard to economic decision making for firms,the short run is
A)a definite number of months.
B)a period over which the quantities of all factors of production and technology are variable.
C)a period over which the quantity of at least one significant factor of production is fixed.
D)a period over which the quantities of all factors of production are variable but technology is fixed.
E)less than one year.

Question

Quizplus · Accepted Answer

In the short run, the quantity of at least one significant factor of production is fixed, which means that the firm cannot adjust its production level to changes in demand or other market factors by changing the fixed factor of production. For example, a bakery may be able to vary the number of employees or the quantity of flour used in its production process in response to changes in demand, but it cannot easily change the size of its oven or the location of its store. This makes short-run decision making especially challenging for firms, as they need to carefully balance their fixed and variable costs to maximize profits.

With Regard to Economic Decision Making for Firms,the Short Run