Which of the following is a factor of production that generally is fixed in the short run?
A) raw materials
B) labour
C) a factory building
D) water

Question

Quizplus · Accepted Answer

In the short run, the size of the factory and other capital goods is generally fixed, meaning that the amount of factory buildings, equipment, and other capital goods is generally fixed. This makes choice C, a factory building, the correct answer. Raw materials and water are variable factors of production as they can be easily obtained in differing amounts in the short run. Labor is also a variable factor of production as the amount of labor can be increased or decreased in the short run, such as by hiring or laying off workers.

Which of the Following Is a Factor of Production That