Consider a manufacturing operation that uses specialised machinery and labour to produce its output.In this case, the input that is not fixed in the short run is labour.

Question

Quizplus · Accepted Answer

In the short run, capital (specialised machinery) is usually a fixed input and cannot be easily changed, whereas labour input can be adjusted by hiring or laying off workers. Therefore, labour is the input that is not fixed in the short run.

Consider a Manufacturing Operation That Uses Specialised Machinery and Labour