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\begin{tabular}{l} Inputs that can be increased or decreased in the short \\ run are called \\ \hline fixed inputs \\ \hline variable inputs \\ \hline economic inputs \\ \hline accounting inputs \\ \hline normal inputs \end{tabular}

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Mar 14,2025

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Variable inputs can be increased or decreased in the short run.

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In the world of economics, the distinction between fixed and variable inputs is crucial for understanding production processes. Fixed inputs, like factory buildings and heavy machinery, remain constant regardless of output levels, while variable inputs, such as labor and raw materials, can be adjusted based on production needs. Recognizing this difference helps businesses optimize efficiency and cost management. In practice, businesses often face the challenge of balancing these inputs. A common mistake is over-relying on fixed inputs when demand can fluctuate, leading to inefficiencies and wasted resources. Instead, companies should evaluate their production strategies regularly to ensure that they can actively adjust variable inputs to meet market demands without incurring unnecessary expenses.

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