Which of the following is true of fixed costs?   a. Fixed costs can be changed, but it is extremely costly to do so in a short period of time. Therefore, in the short run not all input factors are flexible   b. Fixed costs can be changed immediately. Therefore, we do not observe inefficiencies in the economy.   c. Fixed costs can never be changed. Therefore, companies do not change their output over time.   d. Fixed costs are not an issue economists deal with. The term relates to psychology.

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Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.