The Short Run Is a Time Period During Which

question 32

Multiple Choice

The short run is a time period during which

• A) some of the firm's resources are fixed.
• B) all of the firm's resources are fixed.
• C) all of the firm's resources are variable.
• D) the fixed cost equals zero.
• E) the firm cannot increase its output.

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Definitions:

Wasteful Duplication

The unnecessary repetition of tasks or production, often leading to inefficiency and increased costs.

Excess Capacity

A situation where a firm is operating below its maximum production capability and can produce more with the existing resources.

Physical And Human Capital

Assets including machinery, buildings (physical capital) and the skills, knowledge, and experience possessed by an individual or population (human capital).

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been built to handle, due to insufficient demand.