Introduction to Economics 1 Deneme Sınavı Sorusu #754062
I. Building
II. Labor
III. Machinery
IV. Technology
Which of the above can be considered as ‘fixed inputs’ for a firm?
I and IV |
II and III |
I, II and IV |
I, III and IV |
II, III and IV |
Some factors of production cannot be changed in the short run. If the firm decides to upgrade its technology, construct a new building, or expand its machinery and equipment capacity today, it would take quite some time to realize any of these changes. Therefore, a period in which certain inputs cannot be changed is called the short run. These inputs are fixed in the short run. Therefore, they are called fixed inputs. The firm, however, can change certain inputs rather quickly—in the short run— and these inputs are called variable inputs. Labor is a typical variable input. The correct answer is D.
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