In the Short Run

question 13

Multiple Choice

In the short run,

• A) at least one factor of production is fixed.
• B) all factors of production are fixed.
• C) all factors of production are variable.
• D) there are no variable costs.

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Definitions:

Outsourced Function

A task or operation that is performed by external parties rather than by in-house staff.

In-house

Referring to activities or operations that are carried out within an organization by its own members or resources, rather than being outsourced.

Outsourcing Arrangements

Agreements where one company hires an external party to perform services or create goods that traditionally were performed in-house.

Cost Savings

Reductions in expenses, achieved through efficiency improvements, negotiation, or eliminating wasteful practices, contributing to an organization's financial health.