Suppose that a firm has the choices 1, 2, and 3 above. Historically they have produced 12,000 units. Suddenly, demand increases sharply leading to a permanent change in production for the firm from 12,000 units to 22,000 units.
In the short run we expect that the firm will produce using ______ when fixed cost is ____.
In the long run we expect that the firm will produce using ______ when fixed cost is_____.