Asked by Tristan Jansen on Jun 25, 2024
Verified
A firm has no fixed factors of production in
A) the short run.
B) the long run.
C) the short run and in the long run.
D) neither the short run nor the long run.
Fixed Factors
Inputs or resources in the production process that cannot be easily increased or decreased in the short term, such as buildings and land.
Long Run
A period in which all inputs, including capital, are variable, allowing firms to adjust all factors of production.
- Master the distinction relevant to short and long durations in the context of manufacturing processes and the strategic planning of companies.
Verified Answer
HR
Hansa RathodJun 27, 2024
Final Answer :
B
Explanation :
In the long run, all factors of production are variable, meaning a firm has no fixed factors. This allows for adjustments in all inputs to achieve desired output levels.
Learning Objectives
- Master the distinction relevant to short and long durations in the context of manufacturing processes and the strategic planning of companies.