All categories

3 years ago

Why can't businesses afford all of the factors of production all of the time?

2 answers:

6 0

Economists traditionally divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Land refers to natural resources, labor refers to work effort, and capital is anything made that is used to make something else.

kkurt [141]3 years ago

5 0

Answer:

The factors of production are not affordable all of the time because of poor/wrong planing towards affording such factors.

Explanation:

The factors of production every business need to strive are mostly divided into groups which are : location, labor, capital and entrepreneurship.

location: the location of a business is essential to the survival of that business because a wrongly placed business no matter how lucrative the business is, might lead to the business most likely failing to succeed.
labor: every business have to consider the source and cost of labor before setting out properly and this is very vital as well because every business require some form of labor.
capital: the capital of the business is like the lifeline of the business almost every business requires capital if not all so getting a reasonable source of capital is good way to start out

these factors are not always affordable all the time because most businesses fail to plan properly before embarking on a business venture

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