Suppose That a "Doggie Day Care" Firm Uses Only Two

question 164

Multiple Choice

Suppose that a "doggie day care" firm uses only two inputs: hourly workers (labor) and a building (capital) . In the short run, the firm most likely considers

• A)both labor and capital to be fixed.
• B)both labor and capital to be variable.
• C)labor to be variable and capital to be fixed.
• D)capital to be variable and labor to be fixed.

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Definitions:

Distribution Center

A warehouse or specialized facility where goods are stored, managed, and distributed to retailers or customers.

Washington

A state in the Pacific Northwest region of the United States, known for its large forest areas, the Cascade Range, and being the home of the city of Seattle.

Television Sets

Electronic devices designed to receive and display broadcasts of moving images along with sound, creating a visual entertainment medium.

Arkansas

A state located in the southeastern region of the United States known for its diverse landscapes ranging from mountains to rivers and forests.