Economists define the short run as a period of time so short that A

Economics Aug 06, 2020

Economists define the short run as a period of time so short that A. the amount of output cannot be changed except under diminishing marginal returns. B. the amount of output cannot be changed at all. C. only one factor of production can be varied. D. at least one factor of production cannot be varied. Lütfen birini seçin: A B. C. D.

Expert Solution

Option (D) atleast one factor of production cannot be varied. i.e, it is defined as period in which atleast one factor of production is fixed. Example machinery is fixed in short run, but in long run firm can expand and buy new machines to increase its output.

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