The distinction between variable and fixed inputs
A) can be made only in the long run.
B) can be made by calculating the difference between an input's marginal product and its average product.
C) is based on the time period under consideration.
D) is that variable inputs are not subject to the law of diminishing returns.
E) reflects the difference between human and nonhuman inputs.

Question

Quizplus · Accepted Answer

The distinction between variable and fixed inputs is based on the time period under consideration. In the short run, at least one input is fixed, while in the long run, all inputs are variable. Therefore, this distinction can only be made by considering the time period in question.

The Distinction Between Variable and Fixed Inputs