Asked by Ashish Bhardwaj on Sep 23, 2024
Verified
In the short run,
A) Some production costs are fixed
B) All inputs are variable
C) All inputs are fixed
D) None of the above
Short Run
A period of time in economics during which at least one input, like plant size, is fixed and cannot be changed.
Production Costs
The total expenses incurred in the process of producing or manufacturing goods or services.
Inputs
Resources such as raw materials, labor, and capital used in the production process to create goods or services.
- Grasp the concept of variable, fixed, and total costs in the short run and how they affect production decisions.
Verified Answer
SM
Swati Modha1 day ago
Final Answer :
A
Explanation :
In the short run, some production costs are fixed, such as rent, insurance, and salaries for permanent employees. However, variable costs, such as raw materials and hourly labor, can still fluctuate in response to changes in production levels. Therefore, option A is the best choice.
Learning Objectives
- Grasp the concept of variable, fixed, and total costs in the short run and how they affect production decisions.