Difference between variable factor and fixed factor
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Production is the result of combined efforts of the factors of production. These factors may be fixed or variable. A fixed factor is one, whose quantity cannot readily be changed in response to desired changes in output or market conditions.
Its quantity remains the same, whether the level of output is more or less or zero. Buildings, land, machinery, plants and top management are some common examples of fixed factors. A variable factor, on the other hand, is one whose quantity may be changed in response to a change in output.
Raw materials, ordinary labour, power, fuel, etc. are examples of variable factors. Such factors are required more, when output is more; less, when output is less and zero, when output is nil. For the sake of analytical simplicity, semi-variable factors are not considered here.
hope this helps u....
Production is the result of combined efforts of the factors of production. These factors may be fixed or variable. A fixed factor is one, whose quantity cannot readily be changed in response to desired changes in output or market conditions.
Its quantity remains the same, whether the level of output is more or less or zero. Buildings, land, machinery, plants and top management are some common examples of fixed factors. A variable factor, on the other hand, is one whose quantity may be changed in response to a change in output.
Raw materials, ordinary labour, power, fuel, etc. are examples of variable factors. Such factors are required more, when output is more; less, when output is less and zero, when output is nil. For the sake of analytical simplicity, semi-variable factors are not considered here.
hope this helps u....
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