Production in the Short Run Requires

question 108

Multiple Choice

Production in the short run requires

• A)no factor of production.
• B)both fixed and variable factors of production.
• C)variable factors of production only.
• D)fixed factors of production only.
• E)the difference between fixed and variable factors of production.

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, leading to specialized production and trade benefits.

Specialization

The practice of focusing effort and resources on a specific task, area of knowledge, or market segment to increase efficiency and proficiency.

Comparative Advantage

The proficiency of an individual, a business, or a nation in generating a product or executing a service at a more economical opportunity cost than its competitors.

Lower Cost

Refers to a situation or strategy in which expenses are minimized or reduced.