Capital cannot be adjusted in the short run because:
A) there is not sufficient time to adjust it.
B) it is too expensive to alter the capital stock.
C) capital markets do not function well enough in the short run.
D) in the short run the firm has yet to decide what product to produce, so it does not yet know what kind of capital it needs.

Question

Quizplus · Accepted Answer

Capital cannot be quickly adjusted in the short run because it takes time to obtain, build, or sell capital goods.

Capital Cannot Be Adjusted in the Short Run Because