Questions
Single choice
Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic
Options
A.a. in the short-run but not in the long-run.
B.b. in the long-run but not in the short-run.
C.c. both in the long-run and in the short-run.
D.d. neither in the short-run nor in the long-run.
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Step-by-Step Analysis
Consider the core concept: in the short run, some inputs are fixed while others are variable; in the long run, all inputs are variable and firms can adjust plant size as well.
Option a: 'in the short-run but not in the long-run.' This aligns with the standard distinctio......Login to view full explanationLog in for full answers
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