An economist is studying the pricing behavior of Las Vegas all-you-can-eat buffets. He says he will limit his analysis to a time period that allows for new buffets to enter the market and for existing ones to leave it. The economist is referring to the ________ time period.
A) market
B) industry
C) long-run
D) short-run

Question

Quizplus · Accepted Answer

The economist is referring to the "long-run" time period because this is when firms can enter or exit the market, allowing for adjustments in supply that reflect changes in demand or cost conditions. In the short-run, the number of firms is fixed.

An Economist Is Studying the Pricing Behavior of Las Vegas