In the short run,
A) a firm cannot hire new workers.
B) wage rates and product prices cannot change.
C) a firm cannot add on to an assembly line or introduce new machines to the production process.
D) employment levels cannot change.

Question

Quizplus · Accepted Answer

In the short run, firms are limited in their ability to adjust all factors of production. They can typically change the level of labor employed but cannot easily add to their capital stock, such as expanding an assembly line or introducing new machinery, due to time and cost constraints.

In the Short Run