Multiple Choice Q7 Which of the following assumptions is often realistic for a f

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Multiple Choice Q7 Which of the following assumptions is often realistic for a firm in the short run? A.  The firm can vary the number of workers it employs, but not the size of its factory. B.  The firm can vary the size of its factory, but not the number of workers it employs. C.  The firm can vary both the size of its factory and the number of workers it employs. D.  The firm can vary neither the size of its factory nor the number of workers it employs. Multiple Choice Q7 Multiple Choice Q7 Which of the following assumptions is often realistic for a firm in the short run? A.  The firm can vary the number of workers it employs, but not the size of its factory. B.  The firm can vary the size of its factory, but not the number of workers it employs. C.  The firm can vary both the size of its factory and the number of workers it employs. D.  The firm can vary neither the size of its factory nor the number of workers it employs.

Explanation / Answer

A.  The firm can vary the number of workers it employs, but not the size of its factory.

Short run is a period of time where some factors of firm are variable while other are fixed. Size of factory cannot be increased in short run while number of workers can be increased or decreased.

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