Question

Candice is a jewelry shop owner, specializing in beaded necklaces. For each of the following inputs, classify each item as a variable input or a fixed input in the long run.
i. Shipping
ii. Chairs
iii. Upper Managment salary
iv. Beads
v. Hourly Labour
vi. Computers
vii. 2 years Lease on office and rental space

Answer 1

Answer:

Fixed Inputs : ii , iii , vi , vii

Variable Inputs : i , iv , v

Explanation:

Short run is a period in which few factors (inputs) of business can be changed. Fixed Inputs are inputs of the business which are constant in short run.  Variable Inputs are inputs of business which are change-able in short run.

Fixed Inputs : Chairs , Upper Management Salary, Computers , 2 Years lease on office & rental space. As, these can't be changed in short run.

Variable Inputs : Shipping , Beads , Hourly Labour. As, these can be changed in short run.