The short-run production function is based on the assumption that:

Question

Quizplus · Accepted Answer

The short-run production function assumes that technology is constant, which means that the only factors of production that can be changed are the variable inputs such as labor and raw materials. The assumption of constant technology is what distinguishes the short-run production function from the long-run production function, which allows for changes in technology and all factors of production. The other choices (A, B, and C) are not necessary assumptions of the short-run production function.

The Short-Run Production Function Is Based on the Assumption That