3. What is a factor of production that the news article mentions? A factor of production that the news article mentions is __ A. store leases B. stores C. high-quality tea D. bankruptcy protection

##Step 1: Identifying Fixed Costs<br />###The question asks for a factor of production. Factors of production are inputs used in the production process. The knowledge summary defines Total Fixed Costs (TFC) as costs that don't change with output. The provided options relate to costs, so we should consider which options represent fixed costs.<br />##Step 2: Analyzing Options<br />###Store leases represent a fixed cost because rent payments typically do not change with the level of output. Stores themselves could be either fixed or variable depending on the context (e.g., owning vs. renting). High-quality tea is a variable cost, as the amount used depends on output. Bankruptcy protection is a legal process, not a factor of production.<br />##Step 3: Determining the Correct Answer<br />###Store leases are a fixed cost and thus a factor of production that doesn't change with output.<br /><br />#