- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Topics in Demand and Supply Analysis
- Subject 8. Understanding Economies and Diseconomies of Scale
CFA Practice Question
In the short run, the number of production facilities is ______ and the amount of labor is ______.
B. fixed; fixed
C. variable; variable
A. fixed; variable
B. fixed; fixed
C. variable; variable
Correct Answer: A
Because it typically takes longer to build a facility than to change the number of hours of labor hired, in the short run, labor is a variable input and the production facility is a fixed input.
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