In the case of a short-run production function:
A)all of the inputs are variable.
B)the amount of labor employed is held constant.
C)at least one of the inputs is fixed.
D)all of the inputs are fixed.

Question

Quizplus · Accepted Answer

In the short-run production function, at least one input (usually capital) is fixed while one or more inputs (usually labor) are variable. This means that the amount of labor employed can be changed but the quantity of fixed inputs cannot be altered in the short run. Hence, option C is correct. Options A and D are incorrect because all inputs cannot be variable or fixed simultaneously in the short run production function. Option B is incorrect because the quantity of labor employed can be varied in the short run.

In the Case of a Short-Run Production Function