The Short Run Is a Time Period Such That

question 23

Multiple Choice

The short run is a time period such that

• A) the existing firms in the market do not have sufficient time to change the amounts of any of the inputs that they employ.
• B) the existing firms in the market do not have sufficient time to either increase or decrease their current rate of output.
• C) the existing firms in the market do not have sufficient time to increase the size of their existing plant or build a new factory.
• D) new firms may build plants and enter the industry.

---

Definitions:

Tuition Bonds

Financial instruments issued by educational institutions to fund their operations and expansion, typically repaid from tuition revenues.

Rate of Interest

The charge, as a percentage of the initial loan amount, incurred by a borrower for the utilization of funds or assets from a lender.

Company Cost

Expenses incurred by a business in the process of producing goods or services, including operational, production, and capital costs.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund the production of goods and services or to pay for investments.