In the short run, a firm
A) has at least one fixed factor of production.
B) can enter an industry where positive profits are being earned.
C) can exit an industry, and all of its factors of production are variable.
D) Both B and C are correct.

Question

Quizplus · Accepted Answer

In the short run, a firm has at least one fixed factor of production, meaning not all inputs can be adjusted immediately. Choices B and C describe scenarios more applicable to the long run, where firms can enter or exit industries and all factors of production are variable.

In the Short Run, a Firm