In the short run, firms are unable to change their scale of production because some inputs (such as capital) are fixed in the short run. Therefore, the firm's output can only be increased or decreased by varying other inputs (such as labor), but the scale of production cannot be changed.

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The Short Run Is

Question 47

Multiple Choice

The short run is:

A) a period in which firms are able to vary all inputs.
B) a period in which firms are unable to change their scale of production.
C) a period in which inputs can be varied only in equal proportions.
D) a period that is the same for all firms across all industries
E) a period that only has variable costs.

Correct Answer: