The short run is a period that is:
A) less than one week.
B) less than one month.
C) long enough in which to vary output but not plant capacity.
D) long enough in which to make all economic adjustments.

Question

Quizplus · Accepted Answer

The short run is a period in which the firm can vary its output by using variable factors of production (e.g. labor and materials), but it cannot change its fixed factors (e.g. plant size). Therefore, option C is the correct answer as it specifies the length of time in which only variable factors can be adjusted, while fixed plant capacity remains constant. The other options (A, B, and D) are incorrect as they do not reflect the defining characteristic of the short run, which is the inability to change fixed inputs.

The Short Run Is a Period That Is