In the short run, the costs associated with variable inputs are , and the costs associated with inputs are . variable;
fixed;
fixed fixed;
fixed;
fixed variable;
fixed;
variable fixed;
fixed;
variable

fixed

Explanation: In the short run the rate at which some input being used are fixed and costs associated with these fixed inputs must be incurred regardless of the level of output produced. Other costs do different with the level of output produced by the firm during that period.

The distinction between the two is that the product business sells a physical, tangible product, while the service business owner sells skills as the primary product.