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what is fixed input and variable input in economics?
Fixed inputs are things you can't easily change (that is, things that only change in the long-run). Variable inputs are things you can easily change (things that change in the short run). So... [ Fixed inputs: - Your building (because you own or lease it (binding contract)) - Your video library (it would be hard to sell all this off easily and not lose a ton of money) - Your shelves and
any other interior decoration you might have paid for when you opened the store (the more permanent stuff like carpet and counters, etc) Variable inputs: - Your employees (you can fire/hire people easily) - Your bills (if you shut down, you can stop paying heat/electricity, even though you can't get rid of the building as easily) - Your cleaning service or other such things (some video stores have food and drinks for sale, stuff like that you can stop ordering) Customers are NOT an input (as in other answer!). Inputs are another word for costs. Your customers don't cost you anything! ]
Expert answered|Onlineexpert|Points 366|
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Asked 11/17/2013 10:43:21 PM
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