When the demand for electricity peaks during the hottest days of summer, Florida Power and Light Company 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 in the
A) market run.
B) short run.
C) intermediate run.
D) long run.

Question

Quizplus · Accepted Answer

In the short run, a company can increase production by using more inputs like labor and fuel, but it cannot change its fixed capacity, such as building new facilities.

When the Demand for Electricity Peaks During the Hottest Days