The production function for good X exhibited in the above table is for the
A)long run, since K is the fixed input.
B)short run, since L is the fixed input.
C)long run, since K is the variable input.
D)short run, since L is the variable input.

Question

Quizplus · Accepted Answer

In the above table, the quantity of capital is fixed at 10 units and only the quantity of labor is being varied to produce different levels of output. Therefore, this is a short-run production function. Option B states this correctly.

The Production Function for Good X Exhibited in the Above