MP Board Notes
Home> Class-12> Economics >Q 86

Que : 86. What are the main factors of production and what are called the remunerations to each of them ?
Answer:

Variable factors - refers to those factors , which can be changed in the short run. for eg. raw material, casual labour, fuel, etc.

Fixed factors - those factors which cannot be changed in the short run. For eg. plant and machinery, land, building, etc.

remunerations of these factors of production are follows-

land : rent

labour : wages

capital : interest

entrepreneur : profit