Variable factors of production are the inputs that a manager:
A) may adjust in order to alter sales.
B) may adjust in order to alter production.
C) cannot adjust in the short run.
D) cannot adjust in the long run.

Question

Quizplus · Accepted Answer

Variable factors of production are those inputs that can be varied by a manager in the short run to alter production levels. These factors include labor, raw materials, and energy. In contrast, fixed factors of production, such as land, capital equipment, and building cannot be easily varied in the short run. Therefore, the best choice is B as a manager can adjust variable factors of production to increase or decrease the level of output.

Variable Factors of Production Are the Inputs That a Manager