In the short run,
A) all the firm's resources are variable.
B) none of the firm's resources is variable.
C) the time period always covers one year.
D) technically efficient production is not possible.
E) at least one of the firm's resources cannot be varied.

Question

Quizplus · Accepted Answer

In the short run, at least one of the firm's resources cannot be varied. This resource is called a fixed input, while the variable inputs can be adjusted to change the level of output. This is because some inputs require more time or money to change, such as a factory building or specialized equipment, while others can be easily added or reduced, such as labor or raw materials. Therefore, the short run is a period where the firm faces constraints and has to make the best use of its fixed and variable inputs to achieve its production goals.

In the Short Run