Asked by Heath Gillette on Apr 29, 2024
Verified
In the long run,
A) inputs that were fixed in the short run remain fixed.
B) inputs that were fixed in the short run become variable.
C) inputs that were variable in the short run become fixed.
D) variable inputs are rarely used.
Fixed Inputs
Resources or factors of production, such as land or capital, that remain constant regardless of the level of output or production.
Variable Inputs
Resources or inputs whose quantity can be changed in the short term to adjust the level of production.
- Describe how long-run and short-run costs behave and influence firm decisions.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
B
Explanation :
In the long run, all inputs are considered variable, meaning that firms can adjust all factors of production, including those that were fixed in the short run. This allows for changes in production capacity and scale.
Learning Objectives
- Describe how long-run and short-run costs behave and influence firm decisions.