In the short run, the cost of is variable, whereas the cost of is fixed. A. electricity; wages B....
Question:
In the short run, the cost of _____ is variable, whereas the cost of _____ is fixed.
A. electricity; wages
B. labor; capital
C. capital; raw materials
D. capital; labor
E. raw materials; labor
Types of Costs:
Broadly, costs can be divided into fixed and variable costs. Fixed costs remain unchanged at all levels of production while variable costs increase with production.
Answer and Explanation: 1
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View this answerThe correct option is B. labor; capital.
In the short run, the only factor of production that a firm can change is labor. The firm can increase the...
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Identifying Fixed Costs & Variable Costs for Producers
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Chapter 4 / Lesson 3
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Learn the variable and fixed cost definitions and understand these two types of producer costs. Compare fixed vs. variable costs examples and see how they differ.
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