The short run is characterized by

A) plenty of time for firms to either enter or leave the industry.
B) increasing but not diminishing returns.
C) fixed plant capacity.
D) zero fixed costs.

Short Run

A period in which at least one input, such as plant size, is fixed and cannot be changed by the firm.

Fixed Plant Capacity

The maximum output that a facility can produce in a given period under normal conditions, determined by its physical size and design.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit or benefits gained from additional investment will eventually decline.