Question

Matt Newell, a former Air Force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views of the Rocky Mountains. He obtains a loan and purchases the necessary land, facilities, advertising, and five helicopters for his business. What important factor of production has he overlooked in creating his business? A. equipment B. capital C. labor D. entrepreneurship E. natural resources

Answer 1

Answer:

Labor

Explanation:

Factor of production: There are several resources that are required in the process of production or running any business to meet the required goal of the business.

There are four factor of production:

• Land
• Labor
• Capital.
• Entrepreneurship.

In the given case, Matt Newell is an Entrepreneur as he has started a new helicopter tour company, for which he acquired land and capital from the loan, however, he has not to manage labor for his business. Labor is essential to run any business.