Question

Which of the following statements is true?a. Producers can manipulate both variable and fixed inputs within the short run.b. Producers can manipulate only fixed inputs within the short run.c. Producers can manipulate output more in the short run.d. Producers can manipulate output more in the long run.

Answer 1

The correct option here is D)Producer can manipulate output more in the long run.

Step-by-step explanation:

The reason why a producer is able to manipulate output more in long run is because all the inputs which are used for production are variable and under the control of producer. In the long run, a producer is not bound by the factors like number of labors, raw materials, amount of capital, or any fixed cost , as all these factors are variable, so that is why in the long run the change in production takes place when there is a change in the inputs.