Difference between revisions of "Short run"
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| − | The short run is a relatively brief period of time, such as a few months, during which big economic adjustments are impossible. | + | The '''short run''' is a relatively brief period of time, such as a few months, during which big economic adjustments are impossible. |
The short run in [[microeconomics]] is the period in which a firm cannot vary its plant scale or production capacity, but can adjust its output based on how intensively it uses its resources. | The short run in [[microeconomics]] is the period in which a firm cannot vary its plant scale or production capacity, but can adjust its output based on how intensively it uses its resources. | ||
The short run in [[macroeconomics]] is the period during which most prices are sticky, meaning that market shortages or surpluses can occur because the economy's ability to self-correct is limited. | The short run in [[macroeconomics]] is the period during which most prices are sticky, meaning that market shortages or surpluses can occur because the economy's ability to self-correct is limited. | ||
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| + | [[Category:Economics]] | ||
Latest revision as of 03:51, February 12, 2008
The short run is a relatively brief period of time, such as a few months, during which big economic adjustments are impossible.
The short run in microeconomics is the period in which a firm cannot vary its plant scale or production capacity, but can adjust its output based on how intensively it uses its resources.
The short run in macroeconomics is the period during which most prices are sticky, meaning that market shortages or surpluses can occur because the economy's ability to self-correct is limited.