In the long run,Select one:a.some resources are fixedb.all resources are variablec.output cannot be variedd.all resources are fixed
Question
In the long run, select one:
- a. some resources are fixed
- b. all resources are variable
- c. output cannot be varied
- d. all resources are fixed
Solution
In the long run, businesses and economists generally assume that all resources are variable. This means that firms can adjust all inputs to production to achieve their desired level of output.
Explanation:
-
Fixed vs. Variable Resources: In the short run, some resources (like capital equipment) are fixed, while others (like labor) can be varied. However, in the long run, all inputs can be changed, allowing for optimal production conditions.
-
Flexible Production: This flexibility enables firms to enter or exit industries and adjust their scale of production based on market conditions.
Given these considerations, the correct answer to the question is:
Final Answer
b. all resources are variable
Similar Questions
Costs that vary per unit but remain constant in total are:Question 4Select one:a.variable costsb.fixed costsc.incremental costsd.opportunity costs
Which of the following costs remains constant within a relevant range of activity?Group of answer choicesvariable costsmixed costsfixed costsproduction costs
When preparing a flexible budget, variable costs are expressed as a constant amount _____, and fixed costs are expressed as a constant amount _____.
Which of the following is a non-renewable resource?Select an answerASoilBWaterCWindDCoal
As output increases, fixed cost per unit:Group of answer choicesremains constant.increases.equals to fixed costs.decreases.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.