As a firm increases its output in the short run,
A)it also varies its technology
B)it increases all of its inputs
C)it increases its plant size
D)it increases only one of its inputs
E)at least one of its inputs is fixed

Question

Quizplus · Accepted Answer

In the short run, at least one input is fixed and cannot be increased. Therefore, as the firm increases output, it has to rely on increasing the variable input(s) to produce more output. The fixed input could be the plant size or the amount of land, for example, which cannot be easily expanded in the short run.

As a Firm Increases Its Output in the Short Run