-Refer to Figure 8.3.Suppose the firm increases output from 20 to 30 units.In the short run,
A) The firm will employ the same amounts of labour and capital as it would in the long run
B) The firm will employ 5 more workers and 2 less units of capital than it would in the long run
C) The firm will employ 5 fewer workers and 2 more units of capital than it would in the long run
D) Then firm will produce the output at a lower cost than it can in the long run

Question

-Refer to Figure 8.3.Suppose the firm increases output from 20 to 30 units.In the short run,
A) The firm will employ the same amounts of labour and capital as it would in the long run 
B) The firm will employ 5 more workers and 2 less units of capital than it would in the long run 
C) The firm will employ 5 fewer workers and 2 more units of capital than it would in the long run 
D) Then firm will produce the output at a lower cost than it can in the long run

Quizplus · Accepted Answer

The Answer of 
-Refer to Figure 8.3.Suppose the firm increases output from 20 to 30 units.In the short run,
A) The firm will employ the same amounts of labour and capital as it would in the long run 
B) The firm will employ 5 more workers and 2 less units of capital than it would in the long run 
C) The firm will employ 5 fewer workers and 2 more units of capital than it would in the long run 
D) Then firm will produce the output at a lower cost than it can in the long run