Question

If only labour can be changed and capital is kept fixed, the firm uses ______.

Options

• Long‑run production function

• Law of supply

• Short‑run production function

• Law of diminishing returns

Answer 1

If only labour can be changed and capital is kept fixed, the firm uses the short‑run production function.

Explanation:

In the short run, only one input (usually labour) is variable; the rest are fixed.