Which statement best defines variable resources for a firm in the short run?

Question

BlackTom AI · Accepted Answer

In the short run, some inputs are fixed while others vary; variable resources change as output or demand changes (for example, labor hours and raw materials), while fixed resources do not change with output (for example, buildings, major software platforms, or headquarters).

1) Relevant knowledge points and concepts
- Short run in microeconomics: at least one factor of production is fixed.
- Variable resources: inputs whose quantity the firm can adjust quickly in response to output/demand (e.g., hourly workers, fuel, materials).
- Fixed resources: inputs that cannot be changed in the short run without large cost or time (e.g., capital equipment, headquarters, core software).

2) Step-by-step reasoning
- Examine each option and classify the input as fixed or variable in the short run.
  a) Licences: typically fixed in the short run (legal/contractual assets or sunk costs); not adjusted instantly.
  b) Number of delivery drivers and fuel used: drivers (labor supply/hours) and fuel are adjusted up or down as orders change — classic variable inputs.
  c) App software: core platform is capital/technology and usually fixed in the short run (cannot be scaled up instantly).
  d) Company headquarters: physical location and facilities are fixed in the short run.

3) Intermediate “calculations” / checks
- If orders increase, can Uber Eats immediately increase drivers and fuel consumption? Yes → variable.
- If orders increase, can Uber Eats immediately change its headquarters or rewrite core app? No → fixed.

4) Why the correct answer is correct
- Option b describes inputs (labor/drivers and fuel) that vary directly with the level of output/orders, matching the definition of variable resources in the short run.

5) Why other options are incorrect
- a: Licences are generally fixed or sunk in the short run, not variable.
- c: App software is a capital/technology input and typically fixed short run.
- d: Headquarters are a fixed capital asset and do not change with short-run demand.

6) Conclusion
Therefore, the best definition is option b: “At Uber Eats food delivery service, the number of delivery drivers working, and the fuel used increases when more orders are made.” This matches the provided correct answer.

Which statement best defines variable resources for a firm in the short run?单项选择题

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