In economics, the short run means a time period
A) during which new firms are prohibited from entering the industry.
B) during which firms are not allowed to change the amount of imported resources they use.
C) that is between one and five years.
D) during which the firm is unable to change its plant size.

Question

Quizplus · Accepted Answer

The short run is a time period during which a firm is unable to change its plant size. This means that the firm is limited in its ability to expand or contract its operations. Other inputs, such as labor and materials, may be adjusted in the short run, but the firm's physical capital is fixed. The short run is contrasted with the long run, in which all inputs are flexible and the firm can adjust its operations as it sees fit.

In Economics, the Short Run Means a Time Period