Goods and services are not factors of production.
Factors of production are inputs that are needed to provide goods or services. They include, land, labor, capital, and entrepreneurship.
<h2>Further Explanation:</h2><h3>Factors of reproduction </h3>
- Factors of reproduction or resources are inputs or resources that are used in the generation of goods and services with an aim of making profit.
- There are four main factors of production which include; Land, Labor, Capital and Entrepreneurship.
<h3>Land </h3>
- This refers to all the natural resources that are available to be used in the production of goods.
- These natural resources includes raw materials from the ground, non-renewable resources such as petroleum and renewable resources such as timber.
- The income or reward earned from land as a factor of production is rent.
<h3>Labor </h3>
- This refers to the manpower or work done by human beings.
- The value of labor depends on the skills, education and motivation of workers.
- The reward for labor as a factor of production is wages and salaries.
<h3>Capital </h3>
- This refers to the capital goods, that is, man-made objects that are used for production of goods and services such as machinery, equipment and chemicals.
- They also include industries and commercial buildings.
- The reward or income earned from capital goods is interest
<h3>Entrepreneurship </h3>
- It involves coming up with an idea and developing it into profitable business.
- An entrepreneur is therefore an individual who combines the other factors of production to build a business and add the supply in the economy.
- The reward or income earned by entrepreneurs is profit.
Keywords: Factors of production, labor, land, capital
<h3>Learn more about</h3>
Level: High school
Subject: Business
Topic: Factors of reproduction
Mike will not be able to pay his bills. He will not be able to work with an injured ankle. Mike will live in a cycle of poverty at this rate. Mike needs to move back home with his parents & go back to school. While he is in school he will be able to be on his parents insurance while he gets his education. Then when he gets a degree he will be better suited to take care of himself & live on his own.
Answer:
the equivalent units of production for conversion costs is 12,280.
Explanation:
<u>Calculation of the equivalent units of production for conversion costs.</u>
Units transferred out (9,800 × 100 %) = 9,800
Units of ending work in process (6,200 × 40%) = 2,480
Equivalent units of production for conversion costs =12,280
Answer:
The income elasticity of demand for Patty's Pizza is 1. Positive income elasticity shows that Pizza is a normal good.
Explanation:
The annual income of the student's is $10,000.
The annual quantity demanded for patty's pizza is 50 units.
When the income increases to $12,000, the quantity demanded will also increase to 60 units.
There is a positive relationship between the quantity demanded of pizza and income level.
This indicates that pizza is a normal good.
The income elasticity of pizza is 1, the solution is given in the figure below:
Answer:
Break-even point in units= 100,000 units
Explanation:
Giving the following information:
Your variable costs to produce each bottle is $1.
Your fixed costs are $100,000/year.
How many bottles must you sell at $3/bottle to cover your fixed costs and earn your target profit of $100,000
<u>To calculate the number of units to be sold, we need to use the following formula:</u>
<u></u>
Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit
Break-even point in units= (200,000) / (3 - 1)
Break-even point in units= 100,000 units