A basic assumption of the short run is that a firm:
A) can employ more workers and add more capital to the production process.
B) cannot adjust its workforce or the amount of capital it uses.
C) can reduce the number of workers it uses, but it cannot adjust how much capital it uses.
D) can freely adjust the amount of labor and capital that it employs.

Question

Quizplus · Accepted Answer

In the short run, firms can typically adjust the number of workers they employ, but they cannot easily adjust their capital (such as buildings, machinery), which is considered fixed in the short term.

A Basic Assumption of the Short Run Is That a Firm