Question

The machine used by the firm is what type of input?

• A. Variable input
• B. Fixed input
• C. Total input
• D. Technology input

Hint:

Machines and equipment are considered fixed inputs, as their use does not change with the level of output in the short run.

Answer 1

The Correct Option is B

Step 1: Understanding Inputs in Production:
In economics, inputs in production can be classified as either fixed or variable. A fixed input is one that does not change with the level of output, such as machinery or buildings. A variable input is one that changes with the level of output, such as labor or raw materials.
Step 2: Analysis of the Given Options:
- Variable input: This input changes with the level of production. Labor and raw materials are examples of variable inputs.
- Fixed input: This input remains constant regardless of the level of output. Machines, factory buildings, and equipment are examples of fixed inputs. They are typically required for production but do not change with the volume of output.
- Total input: This is the sum of fixed and variable inputs. While it encompasses all resources used in production, it is not a type of input itself.
- Technology input: This is not a standard classification in economic theory. While technology affects the efficiency of inputs, it is not classified as an input type by itself. Step 3: Conclusion:
The machine used by the firm is classified as a fixed input because it remains constant and does not change with the level of output produced.