Question 8
Theory of ProductionThe short-run period in production is defined as a period when
- A.there is at least one fixed factor
- B.all costs of production must be covered
- C.the output cannot be varied
- D.current output is not profitable.
Show the answer and explanation
Answer: A (there is at least one fixed factor)
Explanation
The short run is a period too short to change every input, so at least one factor (such as land or machinery) stays fixed.