The Basic Characteristic of the Short Run Is That

question 255

Multiple Choice

The basic characteristic of the short run is that

• A)barriers to entry prevent new firms from entering the industry.
• B)the firm does not have sufficient time to change the size of its plant.
• C)the firm does not have sufficient time to cut its rate of output to zero.
• D)a firm does not have sufficient time to change the amounts of any of the resources it employs.

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Definitions:

Single Corporation

An individual business entity recognized by law as separate from its owners, possessing rights and responsibilities.

Same Industry

Pertains to businesses or entities that operate within the same sector or category of the economy, producing similar goods or services.

Risky

Involving or exposing someone to a possibility of loss or injury.

Random Walk Theory

The hypothesis that stock market prices evolve according to a random walk and thus cannot be predicted.