Which of the following best describes the short run?
A) Firms are free to vary all inputs.
B) Firms are able to vary some, but not all, inputs.
C) Firms can vary inputs, but only by varying all inputs in equal proportion.
D) Firms cannot increase production at all.

Question

Quizplus · Accepted Answer

In the short run, firms are able to vary some inputs, such as labor, but other inputs like capital may be fixed. Therefore, option B is the best description of the short run. Option A is incorrect because firms may not be free to vary all inputs. Option C is incorrect because firms may not be able to vary inputs in equal proportion due to technological constraints. Option D is incorrect because firms can increase production in the short run, but only up to a certain limit based on their fixed inputs.

Which of the Following Best Describes the Short Run