short-run production function assumes that
A)the level of output is fixed.
B)at least one input is a fixed input.
C)all inputs are fixed inputs.
D)both a and b
E)both b and c

Question

Quizplus · Accepted Answer

The short-run production function assumes that at least one input is a fixed input. This means that there is at least one input in the production process that cannot be changed in the short run, such as a fixed amount of capital equipment or a fixed number of workers. The other inputs, such as raw materials or variable labor, can be adjusted to increase or decrease output. Therefore, option B is the correct choice. Option C is incorrect as it assumes that all inputs are fixed, which is not true for the short-run production function. Option A and D are also incorrect as they assume that the level of output is fixed, which is not true as output can be increased or decreased in the short run by adjusting variable inputs.

Short-Run Production Function Assumes That