Difference between variable and fixed factors
Dear student,
Distinction Between Fixed and Variable Factors
| FIXED FACTORS | VARIABLE FACTORS |
| 1. Fixed factors exist only in the short-run.2. It is independent of output in the short-run.
3. Plant, machines etc. are the examples of fixed 4. It exists even in the zero level of output. | 1. Variable factors exist both in the short-run and long-run.
2. It changes with the change of output in the short-run 3. Labour, raw materials etc. are the examples of variable factors. 4. When output is zero, quantities of variable factors are reduced to zero. |