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Questions
Distinguish between fixed factors and variable factors of production.
Distinguish between fixed factors and variable factors.
Distinguish Between
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Solution
| 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. |
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Notes
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