Question

Short run refers to the period of time when the increase in output can be brought about by ______.

Options

• increasing all factor inputs

• increasing the quantity of fixed factor

• increasing the quantity of variable factors only

• increasing the quantity of one variable input (labour) and keeping all other inputs constant

Answer 1

Short run refers to the period of time when the increase in output can be brought about by increasing the quantity of one variable input (labour) and keeping all other inputs constant.

Explanation:

In the short run, certain factors of production (like land and machinery) are fixed and cannot be changed quickly. Therefore, a firm can only increase its total output by employing more variable factors (like raw materials and labour) to work with those existing fixed assets.