The short run is a
A) 5K run.
B) period of time when plant size cannot be changed.
C) period of time when all resources are variable.
D) period of time when average total costs decline.
E) maximum of 90 days.

Question

Quizplus · Accepted Answer

In the short run, plant size cannot be changed. This means that some factors of production, such as capital, are fixed and cannot be increased or decreased. In the long run, however, all factors of production are variable. Therefore, option B is the correct answer. The other options are not accurate descriptions of the short run.

The Short Run Is a