Answer to Question #298272 in Microeconomics for Jabesa

Question

What is main difference between fixed input and variable input? Give two examples for each?

Answer 1

Fixed Inputs: These are inputs whose quantity remains constant over time or in the case of a short-run production function. Land and machinery are common fixed inputs, although it can also involve specific types of labor (contract base labor).

Variable Inputs: Refer to inputs whose amount can change over time, especially in the short term. Labor, energy, and fuel are examples of these inputs.