The period of time over which at least one factor of production is fixed is called the
A)very-short run.
B)short run.
C)long run.
D)very-long run.
E)immediate run.

Question

Quizplus · Accepted Answer

In the short run, at least one factor of production is fixed, typically capital. This means that firms are unable to adjust their production levels by varying the amount of capital they have available. They can only adjust their output by varying the amount of labor or other variable factors of production they use. The short run can last from a few months to a few years, depending on the industry and the nature of the fixed factors.

The Period of Time Over Which at Least One Factor