Economists generaly define the short run as being?

a) that period of time in which at least one of the firm's inputs, usually plant size, is fixed.


b) that period of time in which all inputs are variable


c) any period of time less than one year


d) any period of time less than six months

Economists generaly define the short run as being?
The short run is no more than one year.
Reply:In economics, the concept of the short-run refers to the decision-making time frame of a firm in which at least one factor of production is fixed. Costs which are fixed in the short-run have no impact on a firms decisions. For example a firm can raise output by increasing the amount of labour through overtime.





A generic firm can make three changes in the short-run:





* Increase production


* Decrease production


* Shut down





In the short-run, a profit maximizing firm will:





* Increase production if marginal cost is less than price;


* Decrease production if marginal cost is greater than price;


* Continue producing if average variable cost is less than price, even if average total cost is greater than price;


* Shut down if average variable cost is greater than price. Thus, the average variable cost is the largest loss a firm can incur in the short-run.
Reply:I think it's A, but here's a link to where I found my answer: http://economics.about.com/cs/studentres...
Reply:I was thinking that Plant Size is the only thing we cant fix in the short run, since we have to literally add to the building.


But if A isnt true,then B cant be true. But I dont like C or D either, too arbitrary...


Hmm.. I dont know to be honest.


C, possibly?