To Produce More Output in the Short Run,a Firm Must

question 112

Multiple Choice

To produce more output in the short run,a firm must employ more of

• A) all its resources.
• B) its fixed resources.
• C) its variable resources.
• D) the least costly resources regardless of whether they are fixed or variable.
• E) Firms cannot produce more output in the short run.

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Definitions:

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, illustrating profitability.

Working Capital Ratio

The amount of current assets that would remain if all a company’s current liabilities were paid immediately; total current assets / total current liabilities.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

a financial statement that shows a company's revenues and expenses, and thus its profit or loss, over a specific period of time.