Final answer:
The short run in economics is a period where some factors of production are fixed, such as the building for a pizza restaurant under lease. Unlike the long run, where all factors can be varied, in the short run, changes to fixed inputs are not feasible.
Step-by-step explanation:
The short run is a period of time in which some factors of production are fixed. To provide an example, consider a pizza restaurant operating under a lease. In this case, where L represents all the variable inputs such as labor, and K represents all the fixed inputs like the building, the restaurant is limited by the size of its current building and cannot opt for a larger or smaller space while under the lease. Hence, it is operating in the short run since it cannot adjust all factors of production.
Furthermore, it is essential to note that the distinction between the short run and the long run is that, in the short run, firms are not able to change the usage of fixed inputs, but in the long run, firms can adjust all factors of production. The transition point between short run and long run, however, is not clearly defined by a specific duration and can vary depending on the context of the business.