In the short-run, some inputs are fixed and some inputs are variable. This means that while some factors, like capital or long-term contracts, cannot be adjusted in the short run, the firm can vary other inputs like labor or raw materials to change their production output within certain limits.

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In the Short-Run

Question 9

Multiple Choice

In the short-run:

A) All inputs are variable
B) Some inputs are fixed and some inputs are variable
C) There are no fixed inputs
D) The firm is not restricted in how much it can produce

Correct Answer: