The process by which the low-cost producers in a competitive market drive out high-cost producers is a _____ run phenomenon.Multiple choice question.shortlong

The correct answer to the question is "short-run."

In economics, the "short-run" refers to a time period in which at least one factor of production is fixed, meaning that firms cannot fully adjust all their inputs to minimize costs or maximize production. During this time, efficient and low-cost producers can drive out higher-cost competitors because they are able to offer lower prices that other firms cannot compete with. This phenomenon is often illustrated through the concept of perfect competition, where resources are allocated efficiently in the market, and less efficient firms may exit the market due to their inability to compete effectively.

In contrast, the "long-run" is a period in which all factors of production can be adjusted, leading to different competitive dynamics. Thus, the driving out of high-cost producers by low-cost producers typically occurs in the short-run as firms respond to the current market conditions.