In the short run:
A)all inputs are fixed.
B)all inputs are variable.
C)some inputs are fixed and some inputs are variable.
D)all costs are variable.

Question

Quizplus · Accepted Answer

In the short run, some inputs are fixed (e.g. capital, facilities) while others are variable (e.g. labor). Therefore, only some costs can be adjusted in the short run, making C the correct choice. A is incorrect because it assumes all inputs are fixed, while B assumes all inputs are variable. D is also incorrect because not all costs are variable in the short run - fixed costs (such as rent) cannot be easily adjusted in the short run.

In the Short Run