The short run, as economists use the phrase, in characterized by ?
Correct answer: A. at least one fixed factor of production and firms neither leaving nor entering the industry.
- A. at least one fixed factor of production and firms neither leaving nor entering the industry.
- B. no variable inputs - that is, all of the factors of production are fixed
- C. all inputs being variable
- D. a period where the law of diminishing returns does not hold
Explanation
In the short run, at least one factor of production is fixed while other inputs may vary; firms also generally cannot freely enter or leave the industry. Therefore option a captures the standard short-run definition.
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