When a farmer increases the amount of variable input used in production:
Group of answer choices
The total fixed costs increase
The total fixed costs decrease
There is never any effect on the output
The amount of output changes
Ans.
Correct Option is - the amount of output changes,
Variable inputs , are the inputs which can be chnage in the short run and is changed to increase of decrease the output that the farmer wants.
Examples of variable inputs are - energey . labor . material etc.
And the fixed cost remains the same , no matter if the level of production has increased or decreased.
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