0 0. Ask your question. The general form of production […] [CBSE 2004C, 07, 09C; AI 05, 08, 11] [1 Mark] Answer: The relationship between physical input and physical output of a firm is generally referred to as production function. Multiple Choice The number of workers hired to harvest the crops The amount of water used each day The land on which the farm is located The amount of fertilizer used each week Production in the Short Run: Production in the short run implies a period of time where there exists a fixed (unchangeable) and a variable (quantity is changeable) factor of production. A. ten lawnmowers B. gas for the lawnmowers C. employees to mow lawns D. wheels to fix broken wheels on the lawnmowers The factors of production include land, labor, entrepreneurship, and capital. A fixed factor of production A) is fixed in the long run but variable in the short run. Which factor of production is geographically fixed? There isn’t one. BIBLIOGRAPHY. In this fixed fac­tor proportion case, the isoquants will be L-shaped and the expansion path is a straight line through the origin. We assume capital is a fixed factor of production in the short run, so its cost is a fixed cost. Production Functions. The marginal product of labor curve shows the change in total product resulting from a: An airline with 20 airplanes has the fixed costs of depreciation and interest (if the planes are partially financed with debt), regardless of the number of times the planes fly or the number of seats filled on each flight. In other words as a firm increases or decreases its output in the short-run, fixed factors remain constant. Machines, factory buildings, plants, permanent employees etc. Considered to be available in fixed quantity; therefore, does not have a supply price. 0 votes. As the farmer adds water to the land, output increases. C) new firms can enter an industry. Solution for The hiring of labour with fixed factor of production under short run after sometimes leads to increase in cost only. But adding more and more water brings smaller and smaller increases in output, until at some point … Still have questions? A factor of production is any input that contributes in a positive way to a production process. The production function relates the quantity of factor inputs used by a business to the amount of output that result. A production function that describes a process which requires inputs to be combined in fixed proportions. Fixed are one time investments like machines, tools and working consists of liquid cash or money in hand and raw material. B) the price of extra units of a factor is increasing. Tharvaniveenarewarew Tharvaniveenarewarew 23.10.2020 Social Sciences Secondary School Which factor of production is fixed 1 Fixed costs, however, can decrease on a … If we go on increasing the variable factor beyond a certain point, it will mean inefficient usage of the fixed factor, acted upon by the variable factor. Fixed Factors Fixed factors are those which remain unchanged as out output of the firm changes in the shout-run. An example of a variable factor of production in the short run is land. Solution for 32. 10 years ago. We make a distinction in the short run between fixed and variable costs. The short run in this microeconomic context is a planning period over which the managers of a firm must consider one or more of their factors of production as fixed in quantity. Which of the following is a factor of production that generally is fixed in the short run? In other words as a firm increases or decreases its output in the short-run, fixed factors remain constant. A decrease in the price of a fixed factor of production decreases total cost and A. decreases marginal cost. The fixed factor is limited in the short run. A variable factor of production 19. Alfred Marshal noticed that we can distinguish among inputs that we can vary in the current period (however long that is), and those we can’t vary in the current period. Fixed costs are usually negotiated for a specified time period and do not change with production levels. general-geography; 0 Answers. A) Raw materials B) Labour C) A factory building D) Water 15. Lv 7. Log in. They are independent of output in the short-run. Our analysis of production and cost begins with a period economists call the short run. A) a fixed factor of production does NOT impose limits on existing firms. Which of the following is a factor of production that generally is fixed in the short run? 7) When at least one factor of production is fixed, firms require more and more workers to produce each additional unit of output. For example, to grow wheat a farmer requires inputs such as seed, farm machinery, land, and labor. Returns to A Fixed Factor. D) existing firms can exit an industry. Certain facts about land are as follows: i. The plot of land is the fixed factor of production, while the water that the farmer can add to the land is the key variable cost. D) is common in large firms but rare in small firms. A cost that remains unchanged even with variations in output. Join now. B. leaves marginal cost… iii. This implies that the change in price of land does not affect its supply. Answer: B Diff ñ 1 Topic: Costs in the Short Run Skill: Fact 2) Fixed costs A) do NOT exist in the long run. 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