What is an input in a production process? What is a fixed input in production?

What is an input in a production process?
What is a fixed input in production?
What is a variable input?
What is a short run production situation?
What does the total production graph show?
What is assumed to be “fixed” in deriving the total production graph?

Solutions

Expert Solution

Answer-1. Inputs are used in the production process to produce output. Inputs are resources such as natural resources, human resources, raw material and capital. Production involves converting inputs into outputs.

Answer-2. A fixed inputs are those inputs which cannot be changed in the short run. Fixed inputs are building, capital equipments and land. These inputs are fixed in the short run. Fixed inputs do not change as output increased or decreased.

Answer-3. Variable inputs are those that can easily be increased or decreased in a short period of time. Variable inputs are labor, wages, raw material, power and fuel. The quantity of variable inputs may be changed in response to a change in output.

Answer-4. Short run is a period of time, in which some factors of production are fixed, i.e. land, capital equipment, rent and some factors of production are variable, i.e. raw material, wages, labor. Short-run production function is also known as law of variable proportion.

Answer-5. Total production graph shows the total amount of output that a firm can produce with a given amount of labor, holding the other inputs fixed. As amount of labor changes, total output changes. In the short run, total production curve as a function of variable inputs.

Answer-6. Capital is assumed to be 'fixed' in deriving the total production graph.

Rahul Sunny answered 1 year ago

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