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In business economics, we have 3 factors of production and i am gonna help you elaborate each of them and how they can be used.
1) Land - This a fixed factor of production and can be used by cultivating on them (Agricultural production), or building on them to house other factors of production (e.g. human beings and machines). This factor of production is said to be fixed because the amount of land you have cannot be changed unless you purchase more and it can only be used to produce a fixed amount of goods per time. for instance, if you have 1 hectares of land and you cultivate on it, you cant cultivate any more once the land is fully cultivated.
2) Labour - also know as men or labourers used for production or workforce. it is used for production purposes by employing them to undertake certain production tasks or activities. in modern day business, labour can also be a machine e.g. robots that are used to produce certain goods.
3) Capital - also known as money. the capital involved in production can be in the form of cash or human capital (Knowledge, management ability, expertise or experience). the cash capital is used to pay labourers and maintain other factors of production (e.g. machines), while human capital is used to reduce cost of production associated with acquiring that particular capital (for instance, we reduce the cost of employing a skilled manager if we are able to train our own manager and as he will still be paid a lesser money than a skilled manager).
so it can be summarized as, land is used for housing the production process, labour is used for performing the production on land, while capital is used to maintain other factors of production (land and labour)..
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What are three factors of production?
Factors of production are the resources used in producing goods and services. The three factors of production are land, capital and labor.
Why are factors of production important in business?
Factors of production are important in business because managers can improve their position when they know what contributes to production. The type of machinery used in production is a factor in production.
What are factors of production name any four factors of production.?
Factors of production
Fixed proportions technology?
The Fixed Proportion Production Function, also known as a Leontief Production Function implies that fixed factors of production such as land, labor, raw materials are used to produce a fixed quantity of an output and these production factors cannot be substituted for the other factors.
Example of what factor of production?
Land, Labour, Capital and Entrepreneurship are the factors of production. Examples are Land, Labour in the form of employees, Capital like machinery used in different companies and industries are examples of factors of production.
What are three factors of production?
Factors of production are the resources used in producing goods and services. The three factors of production are land, capital and labor.
Why are factors of production important in business?
Factors of production are important in business because managers can improve their position when they know what contributes to production. The type of machinery used in production is a factor in production.
What are factors of production name any four factors of production.?
Factors of production
How each factors of production used to produce education?
Which factor used by produce education
Fixed proportions technology?
The Fixed Proportion Production Function, also known as a Leontief Production Function implies that fixed factors of production such as land, labor, raw materials are used to produce a fixed quantity of an output and these production factors cannot be substituted for the other factors.
Example of what factor of production?
Land, Labour, Capital and Entrepreneurship are the factors of production. Examples are Land, Labour in the form of employees, Capital like machinery used in different companies and industries are examples of factors of production.
What term is sometimes used to refer to factors of production?
productive inputs
What is the definition of factors of production?
The resources used to produce goods and services.
What are resources used to make all goods and services?
factors of production
Which of these describes management?
individuals who decide how the factors of production should be used. A+
Define factors of production?
Factors of production are the inputs for the production process. Three basic factors of production are land, labor, capital and entrepreneurship.
Discuss the mobility of factors of production?
mobility of factors of production
