In the short run, total output in an industry
A)is fixed at a specific level.
B)can vary as the result of using a fixed amount of plant and equipment more or less intensively.
C)may be altered by varying the size of plant and equipment which now exist in the industry.
D)can vary as the result of new firms entering or leaving the industry.

Question

Quizplus · Accepted Answer

In the short run, total output in an industry can vary by using the existing fixed amount of plant and equipment more or less intensively, as firms adjust their production levels by varying inputs like labor and raw materials while the size of the plant and equipment remains unchanged.

In the Short Run, Total Output in an Industry