A short-run production function assumes that

• A. The level of output is fixed
• B. The usage of at least one input is fixed
• C. All inputs are fixed inputs
• D. Both (a) and (b)
• E. Both (b) and (c)

Answer: (B)

Verified step by step guidance

1. Understand the concept of a short-run production function: In microeconomics, the short-run is a period during which at least one input in the production process is fixed, while others can be varied.
2. Identify the fixed and variable inputs: In the short-run, typically capital is considered a fixed input, while labor is a variable input that can be adjusted to change the level of output.
3. Analyze the given options: The problem provides several statements about the short-run production function. Evaluate each statement based on the definition of the short-run.
4. Evaluate option (a): 'The level of output is fixed' is incorrect because in the short-run, output can change by varying the variable inputs.
5. Evaluate option (b): 'The usage of at least one input is fixed' is correct as it aligns with the definition of the short-run where at least one input (e.g., capital) is fixed.