CIMA BA1 · Chapter 7 · Question 1 of 11
In economics, the short run is defined as a period in which:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) At least one factor of production is fixed in quantity
Explanation
The short run is not a fixed calendar period. It is the period in which at least one input (usually capital) cannot be changed. In the long run all factors are variable.
More Costs, revenue and market structures MCQs
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- Q6A profit-maximising firm will produce at the output where:
- Q7In the short run, a perfectly competitive firm making a loss should continue to produce as long as: