Study the image given and answer the questions.

Which of the following is is an incorrect statement?

Fixed factors of production can be changed in the short run.

The correct answer is option 3: Fixed factors of production can be changed in the short run.

Explanation:

1. Fixed factors of production cannot be changed in the short run. (Correct) Fixed factors (e.g., land, buildings, machinery) remain constant in the short run because they require significant time and investment to alter.

2. Variable factors of production can be changed in the long run. (Correct) In the long run, all factors of production (both fixed and variable) can be adjusted according to production needs.

3. Fixed factors of production can be changed in the short run. (Incorrect) Fixed factors cannot be changed in the short run because businesses cannot quickly expand factories, buy new land, or install large machinery in a short period.

4. Variable factors of production can be changed in the short run. (Correct) Variable factors (e.g., labor, raw materials) can be adjusted in the short run to meet production demands.