Question
4. The firm depicted in Figure 6-10 currently is producing 200 units of output per day. If it decides to increase its output level to
4. The firm depicted inFigure 6-10currently is producing 200 units of output per day. If it decides to increase its output level to 375 units, then it will
a.
adjust from point F to point G in the short run
b.
be unable to adjust to point G in the short run because some inputs are fixed
c.
be unable to adjust to point G in the long run because some are fixed
d.
be unable to adjust to point H in the short run because some inputs are fixed
e.
adjust from point F to point H in the long run
Please explain your answer --graphical, algebraically, numerically.
Thank you!
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