The short run in economics refers to a period when at least one factor of production remains fixed, limiting a business’s ability to fully adjust to changes in demand or costs. For example ...

President Trump and his advisers say his policies may cause short-term pain but will produce big gains over time. Many ...

1. Since long-run economic profits for a competitive firm are always zero, it will never pay acompetitive firm to adopt a cost reducing innovation. 2. If a lump sum tax is placed on firms in a ...