If a Firm Wishes to Increase Output in the Short

question 156

Multiple Choice

If a firm wishes to increase output in the short run, it can do so:

• A) only by increasing fixed inputs
• B) by increasing its capital inputs
• C) by increasing both fixed and variable inputs
• D) only by increasing variable inputs

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Definitions:

Function

A relation between a set of inputs and a set of permissible outputs, specifying a single output for each input.

Production Function

An equation that describes the relationship between the quantities of productive factors used and the amount of product obtained.

Returns To Scale

Describes how the output of a production process changes as all inputs are scaled up or down by the same proportion.

Input

Resources used in the production process to generate output, including labor, capital, materials, and energy.