Which of the following statements is (are) correct?(x) Economists distinguish between short run and long run production by assuming that in the short run, atleast one input is fixed and in the long run all inputs are variable.(y) In the long run, fixed inputs change to variable inputs so the size of a factory is not fixed in the long run.(z) One would expect to observe diminishing marginal product when the labor force must use a smalleramount of inputs to produce more of the product.(x), (y) and (z)(x) and (y) only(x) and (z) only(y) and (z) only(x) only

Short run and Long run are related to the time period of a business or firm.

Answered: Which of the following statements is…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.7P

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Which of the following statements is (are) correct?
1. (x) Economists distinguish between short run and long run production by assuming that in the short run, at
  
  least one input is fixed and in the long run all inputs are variable.
2. (y) In the long run, fixed inputs change to variable inputs so the size of a factory is not fixed in the long run.
3. (z) One would expect to observe diminishing marginal product when the labor force must use a smaller
  
  amount of inputs to produce more of the product.
1. (x), (y) and (z)
2. (x) and (y) only
3. (x) and (z) only
4. (y) and (z) only
5. (x) only

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