Short Run
The "Short Run" in economics refers to a period during which at least one factor of production is fixed, meaning it cannot be changed. For example, a factory may have a set number of machines that cannot be increased immediately. During this time, businesses can adjust other inputs, like labor or raw materials, to respond to changes in demand.
In the short run, firms can experience varying levels of output and profitability. They may face diminishing returns, where adding more labor leads to less additional output. Understanding the short run helps businesses make decisions about production and pricing strategies in response to market conditions.