Because the entrepreneur; takes the initiative, makes strategic business decisions, innovates, and bears risk.Entrepreneurial ability is considered to be a completely separate factor of production.
IT IS A PRINCIPAL FACTOR IN PRODUCTION BECAUSE 1. The efficiency of other factor of production depends on him 2. The entrepreneur takes the basic decisions concerning the business entreprise 3.He co-ordinates and organises all other factors of production.
enumirate the different 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.
Labour is human physical and mental effort directed in a production process, and the reward for it is wage or salary. Entrepreneur is a self-driven factor employing all aspects of making a given product. Profit is the reward for that endeavor.
Because the entrepreneur; takes the initiative, makes strategic business decisions, innovates, and bears risk.Entrepreneurial ability is considered to be a completely separate factor of production.
IT IS A PRINCIPAL FACTOR IN PRODUCTION BECAUSE 1. The efficiency of other factor of production depends on him 2. The entrepreneur takes the basic decisions concerning the business entreprise 3.He co-ordinates and organises all other factors of production.
enumirate the different 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.
The Production Budget for Chill Factor was $34,000,000.
Labour is human physical and mental effort directed in a production process, and the reward for it is wage or salary. Entrepreneur is a self-driven factor employing all aspects of making a given product. Profit is the reward for that endeavor.
the cost of factor of production
The main factor influencing production is consumer demand.
factor pricing means the payments made to various factors of production .for example- land,labour ,capital,entrepreneur gets rent,wages,interest and profit respectively for their contribution in production. under perfect competition supply of labour is perfectly elastic.(i.e. supply curve is drawn parallel to x-axis.). to understand factor pricing ,one needs to get acquainted with marginal productivity theory of production first which states that factors are paid the value of their marginal physical product.price of a factor is determined by its total demand and supply schedules.
money acts as a factor of production. it is because the other factors of production are indirectly dependent on money. more the money paid to any factor of production more it will work. hence money encourages other factors of production to work more.
Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
The best factor of production is money - since it can buy anything - including human resources. By Dr.R.Senapathi.