Examlex
Why did the Carolingian empire collapse during the ninth century?
Short Run
A period in which at least one factor of production is fixed and cannot be varied by the firm.
Long Run
A period sufficient for all inputs in production to be adjusted, including physical capital and labor.
Allocative Efficiency
Allocative Efficiency occurs when resources are distributed in a way that maximizes the net benefit to society, ensuring that the right goods are produced to meet consumer preferences.
Productive Efficiency
A situation where an economy or a production process is operating in such a way that it could not produce more of one good without producing less of another.
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