During the Short Run, a Firm Cannot

question 134

Multiple Choice

During the short run, a firm cannot

• A) increase its use of labor.
• B) change its plant size.
• C) purchase more raw materials.
• D) change its variable costs.

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Definitions:

Corridor Principle

A theory suggesting that once entrepreneurs embark on a venture, they are likely to encounter unforeseen opportunities and paths that were not visible to them before starting the venture.

Logistics

The management of the flow of goods, information, and other resources between points of origin and consumption to meet customer requirements.

Fast-Growth Start-Ups

Young companies that experience rapid growth in terms of revenue and market size due to innovative products or services.

Startup

A company in the initial stages of operations, often characterized by innovations and fast growth, aiming to meet a marketplace need by developing or offering a new product or service.