Which assumption is often realistic for a firm in the short run
A)The firm can vary both the size of its factory and the number of workers it employs.
B)The firm can vary the size of its factory, but not the number of workers it employs.
C)The firm can vary the number of workers it employs, but not the size of its factory.
D)The firm can vary neither the size of its factory nor the number of workers it employs.

Question

Quizplus · Accepted Answer

In the short run, a firm can typically vary the number of workers it employs but not the size of its factory. This is because adjusting the size of the factory may require significant time and investment, whereas hiring or laying off workers can be done more quickly and at a lower cost.

Which Assumption Is Often Realistic for a Firm in the Short