Capital Cannot Be Adjusted in the Short Run Because

question 31

Multiple Choice

Capital cannot be adjusted in the short run because:

• A) there is not sufficient time to adjust it.
• B) it is too expensive to alter the capital stock.
• C) capital markets do not function well enough in the short run.
• D) in the short run the firm has yet to decide what product to produce, so it does not yet know what kind of capital it needs.

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Definitions:

Devil's Advocate

A role adopted in discussions where an individual presents a contrary opinion or perspective for the sake of argument.

Social Loafing

The tendency for individuals to decrease their effort in pursuing a goal when working in a collaborative environment versus working on their own.

Task-Oriented

An approach or behavior focused primarily on completing tasks or achieving specific objectives.

Performance-Oriented

Focused on achieving high levels of performance and often concerned with the outcomes or results of actions rather than the process.