(Figure: Capital and Labor II) Suppose the firm is producing at point A. If the firm wants to increase output from Q₁ to Q₂, it will: A) not be able to because capital is fixed. B) move to point W in the short run and point Z in the long run. C) move to a point between W and Z in the short run. D) move to point Z in the short run and point W in the long run.

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The Answer of (Figure: Capital and Labor II) Suppose the firm is producing at point A. If the firm wants to increase output from Q₁ to Q₂, it will: A) not be able to because capital is fixed. B) move to point W in the short run and point Z in the long run. C) move to a point between W and Z in the short run. D) move to point Z in the short run and point W in the long run.

(Figure: Capital and Labor II) Suppose the Firm Is Producing