Question

William Welsh, 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?

Answer 1

Answer:

labor

Explanation:

There are four factors of production; land, labor, capital and entrepreneurship:

• William is the entrepreneur,
• Capital accounts for the helicopters, facilities and the advertisement.
• Land in this case is the plot of land where the business will be located.
• But who will fly the helicopters and perform maintenance operations? Who will sell the tours and perform administrative tasks? William will not fly the 5 helicopters himself, perform maintenance operations and sell the tours.

Answer 2

Answer:

Labor has been overlooked

Explanation:

The factors of production are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. 

The first factor of production is land, but this includes any natural resource used to produce goods and services. William Welsh obtains a loan and purchases the necessary land

The second factor of production is labor. Labor is the effort that people contribute to the production of goods and services. Labor resources include the work done as the work of the pilot flying the airplane overhead. He needs pilots for his helicopters he has overlooked it.

The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services. His capital are his helicopters, loan facilities

The fourth factor of production is entrepreneurship. An entrepreneur is a person who combines the other factors of production - land, labor, and capital - to earn a profit. William Welsh is the enterpreneur