From Production to cost Production: transferring inputs into outputs Inputs: resources, production factors, -L, K, N, E ■ Variable inputs: level of usage change with level of production An input whose quantity can be altered in the short run a Fixed inputs level of usage does not change with level of production (in the short-Run) An input whose quantity cannot be altered in the short run Long-run: all inputs are variable(no fixed inputs)From Production to Cost ◼ Production: transferring inputs into outputs ◼ Inputs: resources, production factors, - L, K, N, E ◼ Variable inputs: – level of usage change with level of production – An input whose quantity can be altered in the short run ◼ Fixed inputs: – level of usage does not change with level of production (in the Short-Run) – An input whose quantity cannot be altered in the short run ◼ Long-run: all inputs are variable (no fixed inputs)