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Distinguish between:(i)Variable factors and fixed factors(ii) Short run and long run |
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Answer» Solution :(i) Variable factors are the factors of production which vary with the level of OUTPUT. For example, Labour and Raw material. Fixed factors are the factors which remain fixed throughout the production PROCESS. For example, LAND and Machinery. (ii) Short RUN is a TIME period where some factors of production are fixed and some are variable whereas long run is a time period wherein all the factors of production are variable. |
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