In the short run,
A)Some production costs are fixed
B)All inputs are variable
C)All inputs are fixed
D)None of the above

Question

​In the short run,
A)​Some production costs are fixed
B)All inputs are variable
C)All inputs are fixed
D)​None of the above

Quizplus · Accepted Answer

In the short run, some production costs are fixed, such as rent, insurance, and salaries for permanent employees. However, variable costs, such as raw materials and hourly labor, can still fluctuate in response to changes in production levels. Therefore, option A is the best choice.

​In the Short Run

In the Short Run