Question

A production function for dental services would include dentist hours, dental hygienist hours, dental assistant hours, receptionist hours, medical supplies, energy use, medical equipment, and the size of the physical facility. Use this information to answer the following question.

The above production function for dental services represents a short-run production function. Why?

Select one:

a. All inputs are variable

b. There are more than two inputs

c. Medical equipment and the size of physical facility would be fixed in the short run

Answer 1

The correct answer is: c)

Reason: In the short run, some inputs are fixed and some are variable unlike in the long run when all inputs are variable.

Thanks!