Asked by Pyper Mortenson on May 18, 2024
Verified
In the short run, a firm that produces and sells house paint can adjust
A) where to produce along its long-run average-total-cost curve.
B) the size of its factories.
C) how many workers to hire.
D) the location of its factory.
Short Run
A period in economics where at least one input is fixed, meaning that firms can adjust production levels but not capacity.
Long-Run Average-Total-Cost Curve
A curve that shows the lowest cost at which a firm is able to produce a given level of output in the long run, when all inputs can be varied.
Workers
Individuals engaged in a task or activity, especially in the context of employment, to earn wages or salary.
- Gain an understanding of how inputs in production are related to incurred costs in the short run.
Verified Answer
LR
Lilian Rocel PastranaMay 23, 2024
Final Answer :
C
Explanation :
In the short run, a firm can adjust variable factors such as the number of workers it hires. Adjustments like changing the size or location of its factories or where to produce along its long-run average-total-cost curve are considered long-run decisions.
Learning Objectives
- Gain an understanding of how inputs in production are related to incurred costs in the short run.