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.

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Definitions:

Constitution

The fundamental principles or established precedents that govern a state, organization, or other entity.

Judicial Review

The power of courts to assess the constitutionality of laws or governmental actions and to override those found to be unconstitutional.

Constitution

A system of fundamental principles or established precedents according to which a state or other organization is governed.

Federalism

Federalism is a political system where power is divided between a central government and smaller political units, such as states.