Table of contents

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0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

10. The Costs of Production

Average Total Cost: Short Run and Long Run

Microeconomics

10. The Costs of Production

Average Total Cost: Short Run and Long Run

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Multiple Choice

A short-run production function assumes that

The level of output is fixed

The usage of at least one input is fixed

All inputs are fixed inputs

Both (a) and (b)

Both (b) and (c)

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Verified step by step guidance

Understand the concept of a short-run production function: In microeconomics, the short-run is a period during which at least one input in the production process is fixed, while others can be varied.

Identify the fixed and variable inputs: In the short-run, typically capital is considered a fixed input, while labor is a variable input that can be adjusted to change the level of output.

Analyze the given options: The problem provides several statements about the short-run production function. Evaluate each statement based on the definition of the short-run.

Evaluate option (a): 'The level of output is fixed' is incorrect because in the short-run, output can change by varying the variable inputs.

Evaluate option (b): 'The usage of at least one input is fixed' is correct as it aligns with the definition of the short-run where at least one input (e.g., capital) is fixed.