Question

Distinguish between fixed factors and variable factors of production.

Distinguish between fixed factors and variable factors.

Answer 1

Sr. No.	Basis	Fixed factors of Production	Variable Factors of Production
1.	Meaning	Inputs that cannot be changed in the short run.	Inputs that can be changed easily in the short run.
2.	Dependence on Output	The quantity of fixed factors remains the same regardless of output.	The quantity of variable factors changes with the level of output.
3.	Adjustability	Fixed factors are not easily adjustable in the short run.	Variable factors are easily adjustable based on production needs.
4.	Time Frame	Fixed factors remain fixed in the short run.	Variable factors vary in the short run depending on production.
5.	Examples:	Examples include factory buildings, machinery, land, and permanent staff.	Examples include raw materials, electricity, casual labor, and packing materials.