For a firm, we define the short run as a period of time during which
A) at least one input cannot be changed.
B) all inputs can be changed.
C) only the plant size can be changed.
D) all inputs cannot be changed.

Question

Quizplus · Accepted Answer

In the short run, at least one input, typically the fixed input or the capital, cannot be changed. The variable input or labor can be changed in the short run to adjust to changes in output or demand, but the fixed input remains the same. Therefore, only choice A is correct.

For a Firm, We Define the Short Run as a Period