A factor of production whose quantity cannot be changed during a particular period is a:
A) marginal factor of production.
B) fixed factor of production.
C) incremental factor of production.
D) variable factor of production.

Question

Quizplus · Accepted Answer

A fixed factor of production is one whose quantity cannot be changed in the short run. This could be due to physical or legal constraints, or due to the fact that changing the quantity would be too costly or time-consuming. Examples of fixed factors of production include land, buildings, specialized equipment, and skilled labor. By contrast, a variable factor of production is one whose quantity can be increased or decreased in response to changes in demand or other factors. Examples of variable factors of production include raw materials, energy, unskilled labor, and some types of capital. The other options listed (A) marginal factor of production and (C) incremental factor of production refer to concepts related to the additional output generated by adding one more unit of a factor of production.

A Factor of Production Whose Quantity Cannot Be Changed During