PRC-3 · Chapter 12 · Question 29 of 69
A clothing company receives an emergency order. They can hire more tailors and buy more cloth, but they cannot possibly build a new factory building in two weeks. In economic theory, this specific constraint defines the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Short run
Explanation
The short run is a conceptual time period during which at least one factor of production (usually physical capital or factory size) is fixed and cannot be changed.
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