Increase in supply due to changes in plant size will take place only in the
Answer Details
Changes in plant size refer to the expansion or contraction of a company's production facilities, such as factories or equipment. The time frame in which this change takes place is important in determining how the supply of the company's products will be affected.
In the short run, a company cannot easily change its plant size, so an increase in supply due to changes in plant size is unlikely to occur during this period. In the market period, which is an even shorter time frame than the short run, supply is fixed and cannot be adjusted, so an increase in supply due to changes in plant size is also unlikely.
In the normal time frame, a company has more flexibility to adjust its plant size, but changes in supply may not happen immediately as it may take time to build or expand facilities.
The long run is the time frame in which a company can adjust all of its production inputs, including plant size. In this period, a company can build new factories, expand existing ones, or purchase new equipment to increase production. Therefore, an increase in supply due to changes in plant size will take place only in the long run.
In summary, changes in plant size can affect the supply of a company's products, but the time frame in which this occurs depends on the company's ability to adjust its production inputs. An increase in supply due to changes in plant size will only take place in the long run.