Fixed and Variable Inputs

Fixed and Variable Inputs?

Suppose you own a video rental store. List some of the fixed inputs and variable inputs you would use in operating the store.

Other Answers:

customers aren't a variable input. Inputs are things that the rental store uses to run it's business. Fixed inputs are things that you can't really change in the short run (for example you can't instantly have a new building), where as variable inputs are things that you can change the quantity of pretty quickly (for example it doesn't take long to buy another movie).

Employees are most likely variable (although it's possible that it's fixed if you consider contracts).

In most cases people assume capital inputs (actual physical things, like machines) are fixed, while labor goods (how much somebody works) are variable in the short run

Fixed and variable depends entirely on what your time horizon is.

In the long run, everything is variable. In the extreme short run, almost nothing is variable.

Pick a time horizon:
1 day...labor not variable due to scheduling requirements.
1 week...labor variable, but videos are fixed (because it probably takes more than 1 week to order/ship new videos)
3 months...videos are variable, but facilities are not variable because it would take longer than 3 months to plan, finance and execute and expansion to your store.
1 year...facilities variable, because you could add on to the store, sell out, or relocate during that time horizon.