In the short run, firms
A) exhibit a perfectly inelastic supply curve.
B) can hire inputs such as labor and buy more raw materials.
C) can build new plants.
D) generally make higher-than-normal profits.

Question

Quizplus · Accepted Answer

In the short run, firms can adjust their production levels by hiring more labor or buying more raw materials, but they cannot easily change their fixed inputs, such as building new plants.

In the Short Run, Firms