Asked by Courtney Kohlman on May 30, 2024
Verified
Economists usually assume that capital is a ________ input in the ________ run.
A) variable; short
B) fixed; short
C) fixed; long
D) variable; short and long
Fixed Input
A factor of production that cannot be easily increased or decreased in the short term, such as land or machinery.
Short Run
A period in which at least one input in the production process is fixed, limiting the ability of the firm to adjust production levels.
- Understand the distinction between short-term and long-term expenses involved in production.
Verified Answer
ZK
Zybrea KnightJun 01, 2024
Final Answer :
B
Explanation :
In the short run, economists typically assume that capital (such as machinery, buildings, and other durable goods used in production) is a fixed input, meaning its quantity cannot be easily changed.
Learning Objectives
- Understand the distinction between short-term and long-term expenses involved in production.