Why does the production function represent short-run production?

• A. Because at least one input is fixed while others can be varied.
• B. Because it only considers the long-run equilibrium of the firm.
• C. Because all inputs can be changed simultaneously.
• D. Because it assumes constant returns to scale for all inputs.

Answer: (A)

Verified step by step guidance

1. Understand the concept of a production function: it shows the relationship between inputs used in production and the output produced.
2. Recognize that in the short run, at least one input (usually capital) is fixed, while other inputs (like labor) can be varied.
3. Note that the production function in the short run reflects this by holding the fixed input constant and varying the other inputs to see how output changes.
4. Contrast this with the long run, where all inputs are variable and the firm can adjust all factors of production.
5. Therefore, the production function represents short-run production because it assumes at least one input is fixed while others can be varied.