Asked by Kevin Lawson on Jul 25, 2024
Verified
In the long run, a factory is usually considered a fixed input.
Fixed Input
A resource in the production process whose quantity cannot easily be changed in the short term, such as buildings and machinery.
- Identify the differences between short-run and long-run phases with respect to production and cost implications.
Verified Answer
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Abboss DaneshpourJul 26, 2024
Final Answer :
False
Explanation :
In the long run, all inputs are considered variable, including factories, as firms can adjust all of their inputs based on the production decisions.
Learning Objectives
- Identify the differences between short-run and long-run phases with respect to production and cost implications.