A fixed factor of production is defined in the text as one:
A) that exists in nature and there is only so much of it.
B) that can be used for one thing only.
C) that can never produce more or less in any time period.
D) whose quantity cannot be changed in a particular period.

Question

Quizplus · Accepted Answer

A fixed factor of production refers to a resource or input whose quantity cannot be changed in a particular period. Some examples include land, machinery, and buildings. This is in contrast to a variable factor of production, which can be adjusted in response to changes in output or demand, such as labor or raw materials. Option A refers to a scarce resource or natural resource, but does not specifically indicate that it is fixed or cannot be changed. Option B is not necessarily true, as some fixed factors may have multiple uses or applications. Option C is also not necessarily true, as some fixed factors may be used consistently over time but may have some variability in output or productivity.

A Fixed Factor of Production Is Defined in the Text