Question

For a restaurant: Group of answer A. fire insurance on a building would be a fixed factor of production.B. labor and food would be variable factors of production. C. a building would be a fixed factor of production in the short run. D. choices A and B are correct.

Answer 1

Answer:

C. a building would be a fixed factor of production in the short run

Explanation:

A fixed factor of production are factors of production that cannot be readily varied with production level or output e.g. building, equipment.

A variable favor of production are factors of production that can be easily varied with production. E.g. labour

In the long run, all factors of production can be varied.

Insurance is an expense.

Food is the output produced by the restaurant.

I hope my answer helps you