When dealing with the economics of the business firm, the short run is defined as a period long enough to:
A)gather cost data but not production data.
B)gather cost data and production data.
C)vary output but not plant capacity.
D)vary output and plant capacity.
E)vary plant capacity but not output.

Question

Quizplus · Accepted Answer

In the short run, a firm is unable to change its plant capacity, which means that it cannot change the number of its fixed inputs such as land, buildings, and machinery. However, it can vary the quantity of its variable inputs such as labor and materials to increase or decrease its output. Therefore, the short run is defined as a period long enough to vary output but not plant capacity.

When Dealing with the Economics of the Business Firm, the Short