Question

In microeconomics, the short run is defined as which of the following?


A period that is less than one year


a

A period that is between one year and four years


b

A period that is too short for a firm to be able to change its level of output


c

A period during which some inputs in a firm’s production process cannot be changed


d

A period during which a firm’s fixed costs exceed its variable costs

Answer 1

Correct answer: c

Explanation: In microeconomics the short run is the timeframe in which at least one input (e.g., plant size, capital) is fixed and cannot be changed. In the long run all inputs are variable and firms can adjust all factors of production.