In the short run

Question

In the short run

Quizplus · Accepted Answer

In the short run, existing firms may change the quantity they are supplying. This is because they may have some flexibility in their production processes or inventory levels that allows them to adjust their output to meet changing demand or cost conditions. However, new firms cannot enter the industry in the short run as it takes time and resources to establish a new business. Additionally, price and quantity supplied are not absolutely fixed in the short run, as they may adjust in response to changes in demand or cost conditions.

In the Short Run