Which of the following statements is TRUE?
A)Labor is always a variable input.
B)Capital is always a fixed input.
C)Materials are always variable inputs.
D)None of the above.

Question

Quizplus · Accepted Answer

None of the above statements are always true. Inputs can vary between fixed and variable depending on the specific situation and industry. For example, in some industries, capital may be a variable input if it can be easily adjusted in the short term, while in other industries, labor may be a fixed input due to long-term contracts or difficulty in hiring and training new workers. Similarly, some materials may be fixed inputs if they are essential to production and cannot be substituted, while others may be variable inputs if substitutes are available.

Which of the Following Statements Is TRUE