Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic
A)in the short run but not in the long run.
B)in the long run but not in the short run.
C)both in the short run and in the long run.
D)neither in the short run nor in the long run.

Question

Quizplus · Accepted Answer

In the short run, a firm may be unable to change the size of its factory due to contractual obligations or time constraints. However, in the long run, the firm may have the opportunity to expand or contract the size of its factory. Therefore, the assumption is often realistic in the short run but not in the long run.

Assume a Certain Firm Regards the Number of Workers It