In the short run, output

Question

Quizplus · Accepted Answer

In the short run, output can be varied by adjusting the quantity of variable inputs, such as labor or raw materials, while keeping the fixed inputs, such as factories and equipment, constant. By using the available factors of production more or less intensively, a firm could produce more or less output than before. The size of factories and amount of equipment are generally considered fixed inputs in the short run. Therefore, option A and B are incorrect. Option D is also incorrect because although some inputs are fixed, other inputs can be changed to influence output in the short run.

In the Short Run, Output