In the short run,

Question

In the short run,

Quizplus · Accepted Answer

In the short run, some inputs are typically fixed while others can be varied. This is because certain factors of production, such as capital, are not easily adjustable in the short run, while factors such as labor can be varied more quickly. This means that firms may not be able to adjust their production levels as much as they would like in response to changing market conditions. For example, a factory may be able to hire more workers to increase output in the short run, but it may not be feasible to construct an entirely new production facility. As a result, firms may face limitations in terms of their ability to respond to changes in demand or market conditions.

In the Short Run