Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Capital
B
Land
C
Labor
D
Technology
Understanding the Answer
Let's break down why this is correct
Answer
In the short run, a variable factor in the production process is something that can change easily and quickly as production needs change. This usually includes things like labor and raw materials, which can be increased or decreased depending on how much a company wants to produce. For example, if a bakery wants to bake more bread, it can hire more workers or buy more flour. Fixed factors, like buildings or machinery, cannot be changed quickly and remain constant in the short run. Understanding the difference helps businesses make better decisions about how to adjust their production to meet demand.
Detailed Explanation
Labor is variable because you can hire more workers or let some go quickly. Other options are incorrect because Many people think capital, like machines, can change quickly; Land seems like it could change, but you can't just get more land quickly.
Key Concepts
Short-run production
Topic
Short-Run Production Decisions
Difficulty
easy level question
Cognitive Level
understand
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