Question

What are the factors of production in business? Land, labor, and capital land, capital, and interest land, labor, and customer base capital, customer base, and interest

Answer 1

Answer:

A

Explanation:

correct on edge

Answer 2

Answer:

• Land, labor, and capital

Explanation:

The factors of production are the resources that are used to produce goods and services.

By definition resources are scarce.

Land includes everything that comes from the land, that can be used as raw material to produce other materials; for instance, water, minerals, wood.

Labor  is the work done by anybody, not just at a factory but at any enterpise that produce a good or a service. For instance, the work done by a person in a bank or a restaurant.

Capital is the facilites (buildings), machinery, equipments, tools that the persons use to produce goods or services. For instance, a computer, a chemical reactor, or a pencil.

Nowadays, also entrepreneurship is included as a factor of production, since it is the innovative skill of the entrepeneurs to combine land, labor and capital what permit the production of good and services.