Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Most chocolate companies use already processed chocolate to craft their sweets. But Rogue buys raw cocoa beans, and roasts and grinds them until they're in a liquid state and then runs the chocolate through a big squat machine with rollers. Which statement is true for Rogue?
A) Raw cocoa beans are a variable factor of production and the machine is a fixed factor of production.
B) Both processed chocolate and raw cocoa beans are variable factors of production.
C) Processed chocolate is a variable factor of production and the machine is a fixed factor of production.
D) Processed chocolate and raw cocoa beans are variable factors of production and the machine is a fixed factor of production.

Question

Quizplus · Accepted Answer

Raw cocoa beans are a variable factor of production because their quantity can be changed based on production needs, while the machine is a fixed factor of production as it is a long-term investment that does not change with the level of output.

Minneapolis Business Rogue Chocolatier Sells Specialty Chocolate Bars with a High