Inputs Prob

download Inputs Prob

of 1

description

article

Transcript of Inputs Prob

Fixed and Variable InputsConsider company A. Like all companies, company A uses inputs to produce and sell its goods and services. Which of the following items could be company As fixed inputs, which could be its variable inputs, and which cannot be its inputs at all?

1.A building on which company A has a two-year lease__________________________________________2.Company As product/service__________________________________________3.Company As customers__________________________________________4.Display cases, which can be delivered within a week__________________________________________

5.Gasoline and diesel fuel for Company As trucks__________________________________________

6.Heavy machinery, which must be ordered at least six months in advance__________________________________________7.Labor__________________________________________8.Large trucks, which must be ordered several months in advance__________________________________________

9.Office furniture, which can be delivered within a day or two__________________________________________

10.Office supplies such as paper clips, pens, and pencils __________________________________________11.Payroll__________________________________________12.Raw materials such as bricks, cement, and wood__________________________________________13.Rent that Company A pays for its building space__________________________________________

14.Small tools available at local hardware stores__________________________________________15.Utilities such as electricity and natural gas__________________________________________