What is the correct definition of the short run?
A) a period during which some resource prices, especially those for labor, remain fixed
B) a period during which some resource prices, especially those for labor, are variable
C) a period during which some resource prices, especially those for labor, are less than expected
D) a period during which some resource prices, especially those for labor, are more than expected
E) a period during which some resource prices, especially those for labor, can be renegotiated

Question

Quizplus · Accepted Answer

The short run is a time frame in which at least one factor of production is fixed in quantity; labor is the most common example. In the short run, firms can adjust output by varying the quantity of variable inputs, but they cannot alter the amount of fixed inputs, which means that some resource prices, particularly the price of labor, tend to remain fixed during this period.

What Is the Correct Definition of the Short Run