Fixed and Variable factors

Fixed and Variable factors - according to the varying...

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Fixed and Variable factors: In the act of production a firm uses a variety of goods and services called factors of production or inputs . These factors and services include plant and machinery, factory premises, tools and equipment, land, raw materials, labor etc. Some of these factors are fixed in size. A machine or manager has to be employed in its full capacity, irrespective of the volume of the output. Other factors like labor and raw materials can be employed in small or large units
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Unformatted text preview: according to the varying quantity of output. These are variable factors of production. Fixed factors are indivisible while variable factors are divisible into small units. Fixed factors are supplementary in nature . Machines make productive activity more convenient and efficient. However, even in their absence, output of some volume can be produced . Variable factors are called prime factors without which no output can be produced....
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