Match List-I with List-II:
| List-I | List-II | ||
|---|---|---|---|
| (A) | The factor that remains fixed in the short run | (I) | Fixed factor |
| (B) | The factor that the firm can vary in the short run | (II) | Long run |
| (C) | The period in which all factors can be varied | (III) | Factor proportions |
| (D) | The ratio in which the two inputs are combined | (IV) | Variable factor |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(I), (B)-(IV), (C)-(II), (D)-(III)
These are the basic words of the short run and the long run.
| List-I | List-II | Reason |
|---|---|---|
| (A) The factor that remains fixed in the short run | (I) Fixed factor | The factor that cannot be varied in the short run is the fixed factor. |
| (B) The factor that the firm can vary in the short run | (IV) Variable factor | The factor the firm can vary is the variable factor. |
| (C) The period in which all factors can be varied | (II) Long run | In the long run, all factors can be varied. |
| (D) The ratio in which the two inputs are combined | (III) Factor proportions | Factor proportions are the ratio in which the two inputs are combined. |
NCERT (2026-27): “3.2 The Short Run and the Long Run … In the short run, at least one of the factor – labour or capital – cannot be varied, and therefore, remains fixed. In order to vary the output level, the firm can vary only the other factor. The factor that remains fixed is called the fixed factor whereas the other factor which the firm can vary is called the variable factor.” “3.2 The Short Run and the Long Run … In the long run, all factors of production can be varied. A firm in order to produce different levels of output in the long run may vary both the inputs simultaneously. So, in the long run, there is no fixed factor. …” “3.4 The Law of Diminishing Marginal Product and the Law of Variable Proportions … Why does this happen? In order to understand this, we first define the concept of factor proportions. Factor proportions represent the ratio in which the two inputs are combined to produce output.” |