Fixed Input

… a core term used in Economic Analysis and Atlas102

Definition

EconGuru’s Economic Glossary (reference below) defines fixed input as an input in the production of goods and services that does not change in the short run.

It goes on to say:

“A fixed input should be compared with a variable input, an input that DOES change in the short run. Fixed and variable inputs are most important for the analysis of short-run production by a firm. The best example of a fixed input is the factory, building, equipment, or other capital used in production. The comparable example of a variable input would then be the labor or workers who work in the factory or operate the equipment. In the short run (such as a day or so) a firm can vary the quantity of labor, but the quantity of capital is fixed.”

Atlas topic, subject, and course

Producer Theory and Competition (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

Economic Glossary, fixed input, at http://glossary.econguru.com/economic-term/fixed+input, accessed 19 May 2016.

Page created by: Ian Clark, last modified 19 May 2016.