Capital is often used as a fixed factor of production. Many manufacturing firms cannot operate without a building and equipment. This can also be said about skilled labor. Skilled labor is also a fixed factor of production. For example, what would a hospital do without skilled labor? In the past, there have been several times in which there was a shortage in nurses. If you were in charge of a hospital, what would you do to recruit skilled nurses? How would this affect the shortage of skilled nurses in the long run?