Final answer:
Total income from a facility depends on various factors including the design and construction costs, income generated, duration of income generation, and external economic conditions. Over time, all costs become variable, allowing firms to adapt production methods and optimize profitability accordingly.
Step-by-step explanation:
The total income from a facility is influenced by various factors including the opening date, design and construction costs, the income generated by the facility, and the duration of that income generation. When considering resources energy investment, the Energy Return on Energy Invested (EROEI) is significantly dependent on the operational lifespan of the facility as longer operational times can yield more return against the upfront fixed investment.
Expected profitability can be influenced by external factors such as fluctuations in energy prices or government incentives. Additionally, the financial resources available for initial investment in equipment and support labor can affect the facility's design and construction, albeit creativity in design does not directly correlate with financial investment.
In the long run, when all costs become variable, firms have the flexibility to modify their production technologies or processes. This period is defined differently for each firm based on its specific circumstances, such as contract terms. In this phase, a firm evaluates alternative production methods in response to evolving business conditions.