Question

Which factors among the following we find in short-run production process?

• A. Fixed factors
• B. Variable factors
• C. Both (A) and (B)
• D. None of these

Hint:

Short-run = A mix of Fixed Factors (can't change) + Variable Factors (can change).

Answer 1

The Correct Option is C

The short-run is defined in economics as a period of time in which at least one factor of production is fixed, while others are variable. A firm cannot change its fixed factors (like plant size or heavy machinery) in the short run, but it can change its variable factors (like labor or raw materials) to alter the level of output. Therefore, both fixed and variable factors exist in the short-run production process.