When the demand for electricity peaks during the hottest days of summer,Hydro One can generate more electricity by using more fuel and increasing the working hours of many of its employees.The company cannot,however,increase electric power production by building additional generating capacity.This means that the company is operating in the
A)market run.
B)intermediate run.
C)long run.
D)immediate run.
E)short run.

Question

Quizplus · Accepted Answer

The given situation describes the company's ability to increase electricity production by using more fuel and extending employee working hours. This indicates that the company can only make short-term adjustments to meet the increased demand for electricity, which is characteristic of the short run. In the short run, a company cannot alter its production capacity, but it can vary its variable inputs like labor, fuel, and raw materials. Therefore, option E, short run, is the correct answer.

When the Demand for Electricity Peaks During the Hottest Days