In the short run,costs that arise from resources that cannot vary in quantity are known as ____________,whereas costs from inputs that can vary in quantity are known as ____________.

Question

Quizplus · Accepted Answer

In the short run, costs that arise from resources that cannot vary in quantity are known as fixed costs. These include expenses like rent, salaries of permanent employees, and the cost of buying equipment. On the other hand, costs from inputs that can vary in quantity, such as raw materials and hourly wages for temporary workers, are known as variable costs. Therefore, choice (A) is the best answer.

In the Short Run,costs That Arise from Resources That Cannot