During the short-run period of the production process, a firm will be:
A) unable to vary any of its factors of production.
B) able to vary some of its factors of production.
C) able to vary all of its factors of production.
D) able to vary the size of its plant.

Question

Quizplus · Accepted Answer

During the short-run period, a firm can only vary some of its factors of production, but not all. This is because some factors, such as the size of the plant or the equipment used, cannot be easily changed in the short-run. However, other factors, such as labor or raw materials, can be adjusted more quickly.

During the Short-Run Period of the Production Process, a Firm