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Q: A production cycle in which at least one production factor is fixed is known as:
  • A. short run production
  • B. variable long term production
  • C. constant long term production
  • D. long run production
Correct Answer: Option D - The term short-run production refers to a production cycle in which at least one factor is fixed. For Ex. the supply of land is fixed whereas the supply of capital, labour, raw materials are variable.
D. The term short-run production refers to a production cycle in which at least one factor is fixed. For Ex. the supply of land is fixed whereas the supply of capital, labour, raw materials are variable.

Explanations:

The term short-run production refers to a production cycle in which at least one factor is fixed. For Ex. the supply of land is fixed whereas the supply of capital, labour, raw materials are variable.