PRC-3 · Chapter 12 · Question 1 of 69
A clothing manufacturer receives a massive emergency order. They can hire temporary workers and buy more fabric, but they do not have enough time to build a second factory building. In economic theory, this specific time frame is known as the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Short run
Explanation
The short run is defined as a time period where at least one factor of production (usually capital/factory size) is fixed, while others (labor/materials) can be varied.
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