In the short-run, a firm can increase output by

Analyze the question: It asks what a firm can do to raise output in the short run.

Concept: In economics, the short run is a period during which at least one factor of production is fixed. Usually capital (plant, machinery, equipment, factory size) is fixed, while variable factors such as labour and raw materials can be changed. In the long run, all factors can be varied.

Evaluate each option:

• A. Increasing the size of its machines: This changes the scale of capital, which is fixed in the short run. It is a long-run adjustment.
• B. Purchasing more equipment: This also expands capital and takes time to plan, install and commission. It is a long-run adjustment.
• C. Changing its organizational structure: Restructuring is a slow, long-term change and is not a simple short-run way to raise output.
• D. Increasing the quantity of raw materials: Raw materials are a variable input. A firm can buy more of them quickly (along with hiring more labour or adding overtime) and so increase output without changing its fixed factors.

Tip: Remember "short run = change the variable inputs (labour, raw materials); long run = change everything (plant, machines, scale)". If an option involves buying or expanding capital assets, it is usually a long-run answer.