Question

In the production of wheat, all of the following are variable factors that are used by the farmer, except __________.

• A. the seed and fertilizer used when the crop is planted
• B. the field that has been cleared of trees and in which the crop is planted
• C. the number of hours that the farmer spends in cultivating the wheat field
• D. all of the above are variable factors

Answer 1

Answer: (B)

the field that has been cleared of trees and in which the crop is planted

The price paid for field clearing acts a fixed cost as it will remain unchanged for any amount of crops planted up to a limit. It will have to be paid before production starts and zero output is produced.