In the short run, firms increase output
A)only by increasing the size of their plant.
B)only by decreasing the size of their plant.
C)only by increasing the amount of labor used.
D)only by decreasing the amount of labor used.
E)either by increasing the amount of labor used or by increasing the size of their plant.

Question

Quizplus · Accepted Answer

In the short run, firms can only adjust variable inputs like labor to increase output, as fixed inputs like plant size cannot be changed.

In the Short Run, Firms Increase Output