Managers of agribusiness firms can substitute inputs in the production process to maintain output:

Question

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Managers of agribusiness firms can substitute inputs in both the short run and the long run to maintain output. This is because they have the flexibility to choose different input combinations depending on their relative prices and availability. In the short run, certain inputs may be fixed such as land, but variable inputs such as labor and fertilizer can be adjusted to maintain output levels. In the long run, all inputs can be adjusted including land, allowing for greater flexibility in maintaining output levels.

Managers of Agribusiness Firms Can Substitute Inputs in the Production