1. Upper management salaries: This would typically be considered a fixed input in the long run.
2. Hourly labor: Hourly labor is generally considered a variable input in the long run.
3. Shipping: Shipping costs can be classified as a variable input in the long run.
4. Two-year lease on office and retail space: This would be considered a fixed input in the long run.
5. Chairs: Chairs can be classified as a fixed input in the long run.
6. Computers: Computers can be considered a fixed input in the long run.
7. Beads: Beads can be classified as a variable input in the long run.
What is Fixed Input?
A fixed input refers to an input or factor of production that cannot be easily adjusted or varied in the short run. It is typically characterized by a fixed quantity or level of usage regardless of changes in production levels. Fixed inputs are often associated with long-term commitments or constraints that cannot be easily change.
What is Variable Input?
A variable input refers to an input or factor of production that can be easily adjusted or varied in response to changes in production levels or demand. Unlike fixed inputs, variable inputs can be increased or decreased in the short run to meet the changing needs of production.
NB: Complete 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.
1. upper management salaries
2. hourly labor
3. shipping
4. two-year lease on office and retail space
5. chairs
6. computers
7. beads