Inputs a manager may adjust in order to alter production are:
A) all factors.
B) variable factors.
C) long-run factors.
D) fixed factors.

Question

Quizplus · Accepted Answer

Variable factors are those inputs that can be adjusted in the short run to alter production levels, such as labor, raw materials, and energy. Fixed factors, on the other hand, are inputs that cannot be easily adjusted in the short run, such as capital and equipment. Long-run factors refer to inputs that can be adjusted in the long run, such as plant size and technology. While a manager may adjust all factors in order to alter production, the most effective way to do so in the short run is to adjust variable factors.

Inputs a Manager May Adjust in Order to Alter Production