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Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost3 Marks
Question
Explain the differences between variable factors and fixed factors.
✓

Answer

S No.
Variable factors
Basis
Fixed factors
1.
Variable factors refer to those factors, which can be changed in the short run.
Meaning
Fixed factors refer to those factors which cannot be changed in the short run.
2.
They vary directly with the output.
Relation with output
They do not vary directly with the output.
3.
Labour, raw material, etc.
Example
Capital, land, plant, machinery, etc.

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