In the short run, the cost of is variable, whereas the cost of is fixed.

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22-08-2022
Business

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In the short run, the cost of is variable, whereas the cost of is fixed.

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qwgreen qwgreen · Answer 1 · 2022-08-28T20:38:01+02:00

In the short run, the cost of labor is variable, whereas the cost of capital is fixed.

In the short run or short-term businesses, one factor is kept fixed while the others are variables. Mostly, labor is a variable in short run. But capital is fixed in the short run. This implies that even though the company wants to increase the production or output, the capital should not be increased. The needed output may be gained by employing more labors.

The making of output in such a way takes more time to reach the desired profit. Along with short run there are two more other options. They are:

Long Run and Very Long Run

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In the short run, the cost of __________ is variable, whereas the cost of __________ is fixed.

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In the short run, the cost of is variable, whereas the cost of is fixed.