To produce more output in the short run,a firm must employ more of
A) all its resources.
B) its fixed resources.
C) its variable resources.
D) the least costly resources regardless of whether they are fixed or variable.
E) Firms cannot produce more output in the short run.

Question

Quizplus · Accepted Answer

In the short run, a firm cannot change its fixed resources, such as equipment or buildings. However, it can increase the use of variable resources, such as labor or materials, to produce more output. Therefore, the firm must employ more of its variable resources, i.e. choice C.

To Produce More Output in the Short Run,a Firm Must