Assume a certain firm regards the number of workers it employs as variable,and that it regards the size of its factory as fixed.This assumption is often realistic

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In the short run, a firm may face constraints in changing the size of its factory, such as contracts with the landlord or the time required to construct a new factory. Therefore, the size of the factory is considered a fixed input. However, in the long run, the firm has more flexibility and can adjust the size of the factory to its needs. Therefore, the size of the factory becomes a variable input in the long run.

Assume a Certain Firm Regards the Number of Workers It