Which of the following is INCORRECT?

Question

BlackTom AI · Accepted Answer

In the context of short-run vs long-run production, several statements require careful evaluation.
Option a: 'Some resources are fixed in the short run and some resources are variable.' This is correct because, by definition, the short run includes at least one fixed input (like capital or plant size) and at least one variable input (like labor or materials).
Option b: 'Fixed resources don’t exist in the long run.' This is accurate since, in the long run, all inputs can be varied, and there are no fixed resources; firms can adjust all factors of production.
Option c: 'Labour used in the production process is an example of variable resources.' This is true because labor is typically a variable input that can be adjusted in the short run to respond to changes in output or demand.
Option d: 'There are only variable resources in the short run.' This statement is incorrect because, unlike the long run, the short run includes fixed resources as well as variable ones; not all inputs are adjustable.

Overall, the only statement that does not align with the standard short-run/long-run distinctions is option d, which asserts there are only variable resources in the short run.

Which of the following is INCORRECT?Single choice

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