Question

Which of the following factors are there 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 in economics is defined as a period in which a firm can change its output by changing only its variable factors, while at least one factor remains fixed. For example, a factory can hire more workers (variable factor) but cannot build a new plant (fixed factor) in the short run. Therefore, both fixed and variable factors are present in the short-run production process.