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(Figure: Capital and Labor II) Suppose the Firm Is Producing

Question 45

Multiple Choice

(Figure: Capital and Labor II) Suppose the firm is producing at point A. If the firm wants to increase output from Q1 to Q2, it will: (Figure: Capital and Labor II)  Suppose the firm is producing at point A. If the firm wants to increase output from Q<sub>1</sub> to Q<sub>2</sub>, it will:   A)  not be able to because capital is fixed. B)  move to point W in the short run and point Z in the long run. C)  move to a point between W and Z in the short run. D)  move to point Z in the short run and point W in the long run.


A) not be able to because capital is fixed.
B) move to point W in the short run and point Z in the long run.
C) move to a point between W and Z in the short run.
D) move to point Z in the short run and point W in the long run.

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