GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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all resource are fixed
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the level of out put is fixed
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the size of the production plant is variable
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some resource are fixed and others are variable
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Detailed explanation-1: -The short run is a concept that states that, within a certain period in the future, at least one input is fixed while others are variable. In economics, it expresses the idea that an economy behaves differently depending on the length of time it has to react to certain stimuli.
Detailed explanation-2: -A short run is characterized by the presence of at least one fixed input, with the rest being variable; input refers to factors or elements that directly affect a company’s operations and resulting output.
Detailed explanation-3: -Short run period is a term used in economics to describe a period of production in the future in which the value of one input varies while the value of other input factors are constant. Also read: The Short Run and the Long Run. Total Product Average Product and Marginal Product.
Detailed explanation-4: -It is a false statement that in the short run, all costs are fixed cost. It is the period in which there are both fixed and variable cost.
Detailed explanation-5: -The short run is a time frame in which the quantities of some resources are fixed. The long run is a time frame in which the quantities of all resources can be changed. A sunk cost is irrelevant to the firm’s decisions. To increase output with a fixed plant, a firm must increase the quantity of labor it uses.