-The firm depicted in Figure 7-10 currently is producing 200 units of output per day.If it decides to increase its output level to 375 units,then it will
A)adjust from point F to point G in the short run
B)be unable to adjust to point G in the short run because some inputs are fixed
C)be unable to adjust to point G in the long run because some are fixed
D)be unable to adjust to point H in the short run because some inputs are fixed
E)adjust from point F to point H in the long run

Question

-The firm depicted in Figure 7-10 currently is producing 200 units of output per day.If it decides to increase its output level to 375 units,then it will
A)adjust from point F to point G in the short run 
B)be unable to adjust to point G in the short run because some inputs are fixed 
C)be unable to adjust to point G in the long run because some are fixed 
D)be unable to adjust to point H in the short run because some inputs are fixed 
E)adjust from point F to point H in the long run

Quizplus · Accepted Answer

In the short run, some inputs are fixed, so the firm cannot adjust to a new point like G immediately.

-The Firm Depicted in Figure 7-10 Currently Is Producing 200