Which of the following is an example of a 'fixed resource' in production?
Practice Questions
Q1
Which of the following is an example of a 'fixed resource' in production?
Labor hours.
Raw materials.
Machinery.
Electricity.
Questions & Step-by-Step Solutions
Which of the following is an example of a 'fixed resource' in production?
Step 1: Understand what a 'fixed resource' is. A fixed resource is something that does not change when the amount of goods produced changes.
Step 2: Think about examples of resources in production. These can include things like labor, materials, and machinery.
Step 3: Identify which of these resources is fixed. For example, machinery is used to produce goods and does not change based on how much is produced in the short term.
Step 4: Conclude that since machinery remains constant regardless of production levels, it is a fixed resource.
