The short run is the time period
A)Over which an investment decision can be made.
B)Necessary so that profits can be earned from production.
C)In which some costs are fixed.
D)In which only the amount of capital may be altered.

Question

Quizplus · Accepted Answer

The short run is the time period in which some costs are fixed, meaning that they cannot be changed in response to changes in output or level of production. This is in contrast to the long run, in which all costs can be adjusted. The other options given are incorrect because an investment decision can be made in both the short and long run (A), profits can be earned in both the short and long run (B), and the amount of capital may be altered in both the short and long run (D).

The Short Run Is the Time Period