The Short Run Is Characterized By

question 139

Multiple Choice

The short run is characterized by:

• A) plenty of time for firms to either enter or leave the industry.
• B) increasing,but not diminishing,returns.
• C) at least one fixed resource.
• D) zero fixed costs.

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Definitions:

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and quantities.

Usury Laws

Regulations that set the maximum interest rate that can be charged on loans, intended to protect consumers from excessively high rates.

Rent Control

Government policies or laws that limit the amount landlords can charge for leasing a home or renewing a lease to protect tenants from sharp increases.

Price Ceiling

A government-imposed limit on the price charged for a product or service, intended to prevent prices from rising to levels considered too high for consumers.