The short run is a time period of insufficient length for the firm to change its

Question

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In the short run, a firm is not able to change its plant size and heavy equipment. This is because these decisions require a longer time frame and a significant amount of financial investment. Therefore, the plant size and equipment used in production are considered fixed inputs in the short run. The firm may adjust its output by varying its amount of labor employed or price.

The Short Run Is a Time Period of Insufficient Length