In the short-run:

Question

In the short-run:

Quizplus · Accepted Answer

In the short-run, some costs are fixed and some costs are variable. This means that there are certain inputs (such as rent, interest payments on debt, and salaries) that are fixed in the short-run and cannot be easily adjusted. Other inputs, such as labor and raw materials, are variable and can be adjusted to some extent in response to changes in demand or output. Therefore, option B is the best answer as it correctly identifies the mix of fixed and variable costs in the short-run.

In the Short-Run