The short run is defined as the time frame:
A) in which there are no fixed factors of production.
B) in which there are fixed factors of production.
C) less than one year.
D) less than three years.

Question

Quizplus · Accepted Answer

In the short run, there are fixed factors of production that cannot be adjusted or changed, such as buildings or equipment. This means that firms are not able to fully adjust their production in the short run, unlike in the long run where all factors of production can be changed. Choice A is incorrect since the short run can still have fixed factors of production. Choice C and D are arbitrary time frames and not universally agreed upon as the definition of short run.

The Short Run Is Defined as the Time Frame