For many firms, capital is the production input that is typically fixed in the short run. Which of the following firms would face the longest time required to adjust its capital inputs?
A) Firm that makes DVD players
B) Computer chip fabricator
C) Flat-screen TV manufacturer
D) Nuclear power plant

Question

Quizplus · Accepted Answer

Nuclear power plants are large and complex facilities that require extensive planning, construction, and regulatory approval. The process of adjusting capital inputs, such as building a new reactor, decommissioning an old one, or upgrading safety features, can take several years or even decades, compared to the relatively shorter timeframes for firms that produce consumer electronics such as DVD players, computer chips, or flat-screen TVs.

For Many Firms, Capital Is the Production Input That Is